Do You Expect A Number Of Commercial Or Business Bankruptcy As Well As Personal or Individual Bankruptcy To Rise In 2022? If So, What Factors Do You Think Are At Play Here?

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It is always hard to predict the future. (There was an old saying in the Soviet Union, it was difficult to predict the past since it was always being rewritten.) Therefore, I hesitate to make a prognostication for the coming year.

However, given the cessation of some of the government programs that paid people not to work, and lent money — the loans were ultimately forgiven — to struggling businesses, I suspect that there will be an increase in both individual and business bankruptcy filings in 2022. Eventually it has to happen.

Certainly, the fact that many people haven’t paid their mortgages or rent for almost two years means that the holders of the notes, or landlord, respectively, are in need of money. Once the impediments to seizing property or evicting tenants are removed, creditors will conduct foreclosure sales and evict delinquent tenants.

An individual who has not been paying a mortgage or rent and faces foreclosure or eviction, will look for debt relief. For that individual, bankruptcy may be the answer. Bankruptcy may also be right for a business that does not own the building in which it conducts its business. Inconsistent business due to COVID-19 may also drive a business to bankruptcy.

For more information on Bankruptcy In California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (562) 777-9159 today.