Today There Are 19% More Bankruptcies Than 2022… What Does That Mean For 2023?

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Bankruptcy Filings In The US

What The Numbers Say About 2023

According to recent data from Epiq, the number of bankruptcy filings in the United States has been steadily rising in 2022. As of March 2022, there were 175,067 bankruptcy filings, a 17% increase compared to the same period in 2021. This trend is worrying for many, as it raises questions about the state of the economy and what it could mean for the future.

Why Are They Rising?

While it’s difficult to pinpoint a single cause for the increase in bankruptcy filings, there are several factors that could be contributing to this trend. For one, the ongoing COVID-19 pandemic created a lot of stimulus money which bolstered many Americans with added income. Traditionally, most citizens in these situations would have filed sooner but this indicates that the bank has finally dried up.

Another factor that could be contributing to the rise in bankruptcy filings is the increase in consumer debt as related to relative income. The last few years have seen an insatiable demand for consumer goods and real estate forcing consumers to finance at record high rates.

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What Happens Next?

Looking ahead to 2023, it’s difficult to predict what the future holds for bankruptcy filings in the US. While there are certainly concerns about the economy and the ongoing fallout of the pandemic, there are also some signs of hope. For one, the government has implemented various programs and initiatives to support individuals and businesses during this challenging time, which could help to mitigate the effects of the economic downturn.

What Are The Options?

One of the resources available to individuals who may be facing bankruptcy is the option to sell their home to cash buyers. Traditionally, these businesses may not seem like a great solution to homeowners but there are some new solutions available in the space. With rising interest rates and a banking industry that seems to be teetering having someone available to provide a fast cash out solution can be valuable. Selling to a cash buyer can be a fast and efficient way to get cash in hand, without the hassle and uncertainty of the traditional real estate market.

Want to learn more about your options for cash buyers read more here. 
Bankruptcy is up 19% in 2023.

Another resource available to individuals facing bankruptcy is government programs. The US government has implemented several programs designed to help individuals and families avoid bankruptcy and foreclosure. One such program is the Home Affordable Modification Program (HAMP), which provides homeowners with a more affordable mortgage payment by modifying the loan terms. Another program is the Home Affordable Refinance Program (HARP), which allows homeowners to refinance their mortgages to lower interest rates and monthly payments. These programs can provide significant relief to homeowners who are struggling to keep up with their mortgage payments, and may help them avoid bankruptcy or foreclosure.

What Should I Watch For?

Another obvious factor to keep an eye on is interest rates. If the Fed decide to continue to increase interest rates, this could have a significant impact on the number of bankruptcy filings.

In the wake of the SVB collaps most Americans are anxiously searching for a precursor warning that would indicate a serious financial disaster. Keeping a close eye on bankruptcies could be a good insight into the solvency of the US economy but it’s important to keep in mind that there are many factors at play. By staying informed and taking steps to manage debt and financial stress, individuals and businesses can better navigate these uncertain times and emerge stronger on the other side.

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