Will Bankruptcy Filings Tick Up in the Remainder of 2022?

According to the New Orleans Bar Association, “in January of 2022, total credit had grown by only 2.4%. Revolving credit, which includes credit cards, increased by 20.7% in February to almost $1.1 trillion.  Revolving credit had increased only 4% in January. Recent bankruptcy statistics indicate that filings are on the rise.  According to Reuters and the legal research firm Epic, the total number of new business and consumer bankruptcies filed in March of 2022 grew 33.5% over February.  Consumer filings increased by 34% and business filings rose by 26%. These figures build on a slight upward trend that began in February according to Epiq’s data.” If you or someone you know is considering filing for bankruptcy in Tulsa, Oklahoma, there’s nothing to be ashamed of. Reach out to experienced “Attorneys Near Me” who can help ensure that you make the best decision for you. 

Why Is It That People File for Bankruptcy?

People file for bankruptcy for all sorts of reasons, but certainly ever since the COVID-19 pandemic took over the world, there’s one to two major reasons for why people have been led to a path of bankruptcy declaration. These are medical emergencies and loss of income. While these events occur on a day to day basis, the pandemic has exacerbated the rate at which they take place. Investopedia lists the top 5 reasons why people file for bankruptcy, and as expected both medical expenses and job loss come on top, in fact they’re the first two. “A study published in the American Journal of Public Health in 2019 found that 66.5% of bankruptcies in the U.S. were due to medical issues like being unable to pay high bills or due to time lost from work. Even with health insurance, high deductibles and copays, plus job loss, impact Americans.” Pandemic aside, medical emergencies can force people to run through their savings, retirement funds and even college trusts. 

The second reason Investopedia lists as one of the major contributors to bankruptcy filing in the United States is job loss, and the pandemic saw a great deal of people being laid off, for a couple of reasons. First, during the bigger outbursts of the pandemic, especially as it began to take hold of the U.S., many people, employees, were beginning to report symptoms associated with the virus, and ultimately were diagnosed COVID positive. Oftentimes, these employees were unable to come for weeks, leaving employers who were already under great pressure to lay them off, as they couldn’t keep on paying their employees. The second factor influencing the rates at which people were laid off, were the massive numbers of businesses, particularly small businesses, closing their doors. Many businesses that were just launching with great hopes had to close down, less than a week after opening. 

Bankruptcy declaration is not for everyone, to ensure that this is the best approach for you, reach out to a seasoned bankruptcy attorney in Tulsa, Oklahoma at the Henson Law Firm. For legal questions or concerns, you can also dial 800-672-3103. 

The Henson Law Firm, PLLC is located at:

601 S. Boulder, Suite 600

Tulsa, OK 74119

Phone: 918-551-8995

Website: www.myoklahomadefenselawyer.com

*We are a debt relief law firm in Tulsa, Oklahoma.

*We help people file for bankruptcy relief under the Bankruptcy Code.