Bankruptcy filings continue to fall

Consumer credit and collections continues to be in a pandemic induced state of limbo as evident from the continued decline in bankruptcy filings in the United States. A blog post by Robert M. Lawless goes through the numbers.
Total bankruptcy filings are half of what they were pre-pandemic and are at historic lows. The reasons for such low filings are subject to much debate in the credit industry but are believed to be the consequences of the pandemic as well as state, local, and federal governments’ response to the pandemic.

 For example, the federal government issued moratoriums on evictions before it was finally struck down by the Supreme Court. Additionally, the federal government enhanced safeguards for consumers facing foreclosure through January 1, 2022. Credit and collections are sure to be in a continued state of flux throughout 2022.