The coronavirus (COVID) has caused massive shifts in consumer bankruptcies in 2020 compared to 2019.
The purpose of the bankruptcy statistics and analysis is to provide a statistical analysis of the bankruptcy market due to COVID-19, using US Courts Bankruptcy Caseload Data, AACER bankruptcy data, and internal Ascend bankruptcy data.
The % change of US consumer bankruptcy filings for Chapter 7 and Chapter 13 bankruptcies began to decline in March 2020, and has continued to downward trend through July, 2020.
Below is the data compiled for the United States to show the % change and # change in Chapter 7 bankruptcy and Chapter 13 bankruptcy filings. The data is comparing January 1, 2019 - July 31, 2020 to January 1, 2020 - July 31, 2020. Source: ABI AACER Bankruptcy Data.
The data below was cumulated and studied from Ascend's anonymous bankruptcy calculator. The purpose of the calculator is to provide Chapter 7 qualification estimates and Chapter 13 repayment plan estimates where a user will provide information. The data spans from June, 2018 to August, 2020. Source: Ascend's bankruptcy data.
Below is the data compiled for California to show the % change in Chapter 7 bankruptcy and Chapter 13 bankruptcy filings. The data is comparing January 1, 2019 - July 31, 2020 to January 1, 2020 - July 31, 2020. Source: ABI AACER Bankruptcy Data.
The bankruptcy statistics show that there has been a large shift in bankruptcy filings due to COVID. The primary reason is still unknown, but the hypothesis from many bankruptcy attorneys we worked with to provide this data is the following:
Many bankruptcy attorneys believe that there will be a period of increased bankruptcy filings in the coming months once the stimulus money decreases and the consumer protections starts to diminish.