According to data provided by Epiq, total commercial chapter 11 filings in May 2020 increased 48 percent from the previous year. Total consumer filings decreased 43 percent in May 2020.
According to American Bankruptcy Institute Executive Director Amy Quackenboss, “Companies that tried to shore up their balance sheets at the beginning of the year represent the initial wave of chapter 11s due to the economic crisis brought about by the COVID-19 pandemic… The CARES Act and other swift government measures have been successful in keeping consumers afloat during the crisis. As this relief runs its course, however, mounting financial challenges may result in more households and companies seeking the shelter of bankruptcy.”
According to American Bankruptcy Institute Executive Director Amy Quackenboss, “Companies that tried to shore up their balance sheets at the beginning of the year represent the initial wave of chapter 11s due to the economic crisis brought about by the COVID-19 pandemic… The CARES Act and other swift government measures have been successful in keeping consumers afloat during the crisis. As this relief runs its course, however, mounting financial challenges may result in more households and companies seeking the shelter of bankruptcy.”
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