If you’ve felt extra financial pressure over the past couple of years, you’re not alone. Data from 2023 shows that bankruptcies are on the rise in the United States. While multiple factors have contributed to this increase, one significant driver is the persistence of inflation following the COVID-19 pandemic. As prices for essential goods and services soared as the American economy started up again, many households found it hard to make ends meet, leading to mounting debt.
Analysts predict that the elements that led to the 18 percent increase will continue, so the number of bankruptcies this year might exceed the 445,186 filed in 2023 by individuals and businesses due to reasons such as:
- Inflation’s effect on families — While the rate of inflation has slowed a bit, prices continue to go up, making it more expensive for families to afford necessities like housing, food, healthcare and transportation. As the cost of living increases, individuals and families may resort to credit cards or loans to cover expenses, accumulating debt that becomes increasingly difficult to manage.
- Increased business costs — In addition to its impact on personal bankruptcies, inflation can trigger a ripple effect that hampers companies and their workers. Businesses facing higher costs might be forced to raise prices or lay off employees, further threatening financial stability.
- Winding down of pandemic stimulus — To deal with the economic devastation caused by the pandemic, the federal government spent trillions of dollars on a wide range of relief measures, such as rent amnesty and Paycheck Protection Program loans. As the crisis subsided, these expenditures have gradually gone away, removing key safety nets and causing problems for individuals and institutions that relied on these measures.
If you are struggling with debt due to inflation or other financial pressures, it is crucial to seek legal counsel from an experienced bankruptcy attorney. Our firm can help you understand your options and assess your eligibility for different types of bankruptcy, including Chapter 7 and Chapter 13. Once you decide how to proceed, we will guide you through the complex legal process.
Jeff Field & Associates represents Georgia residents and businesses in bankruptcy matters from offices in Athens, Douglasville, Gainesville, Lawrenceville, Marietta and Scottdale. To discuss your particular debt relief needs, please call 404-381-1278 or contact us online.