Bankruptcy filings are expected to rise given the high unemployment rates and depriving economy. In an interview with OC Register, Trustee and Managing Partner Howard Ehrenberg shares his 2021 bankruptcy predictions and how it will impact businesses.
According to Ehrenberg, financial assistance such as stimulus checks, moratoriums on evictions and enhanced unemployment benefits have managed to prevent many from resorting to bankruptcy. He adds, “People aren’t yet in a desperate spot where bankruptcy is something that has to happen. But once those programs end, we expect to see a large number of individual filings.”
Once relief expires, experts project over one million individual bankruptcy filings and small businesses will continue to face financial distress due to COVID restrictions. Ehrenberg noted this new “norm” has permanently changed how people act and operate during these times.
“After nine months of this, many people have found that they can do most of their shopping electronically. And businesses are realizing they can use Zoom, so people won’t have to go flying to get to meetings,” said Ehrenberg.
Read the OC Register article here.
