FACTS: Consumer bankruptcy filings are their lowest point since 1986, so filings overall in 2020 were down about 50% on average. Commercial cases were ticking up a bit, but a lot of those businesses closed down.
This sure sounds like things are not so bad for Americans. However, are these facts deceiving? Really – is this good news or bad news?
It would be good news if Americans were living with manageable debt or debt free. And, it would be good news if no one was living paycheck to paycheck. More good news would be if everyone had a 6-12 month emergency fund. It would be good news if everyone was employed. Likewise, it would be good news if no one was carrying credit card debt.
Guess what. It’s not good news. It’s bad news. Because Americans are living with unmanageable, even crushing, debt. Americans are living paycheck to paycheck, or relief check to relief check. Americans who were lucky enough to have an emergency fund likely depleted it over the last year. Unemployment in America remains high. Americans are carrying credit card debt.
Rent moratoriums and relief packages from Washington have been helping Americans avoid the obvious – we need to deal with our individual debt. Let’s face it – ignoring it doesn’t make it go away. So, while consumer bankruptcy filings may be at a low point right now, all indicators point to a change in the near future.
If you want help getting your finances in order – whether you need to file bankruptcy or simply restructure your debt to preserve your financial security for the future, give us a call. We will listen to you. We will look at your situation and help you find the best path forward.