Overall bankruptcy filings in 2020 were at their lowest since 1986, though Chapter 11 cases climbed to new heights, indicating that the COVID-19 pandemic had a different financial impact on individuals versus corporations.
The American Bankruptcy Institute, using federal court data, said in a statement on Tuesday that about 544,000 bankruptcy cases were filed in 2020, a 30% drop from 2019. ABI attributed the significant drop in filings to the pandemic, noting that filings were actually up about 1% in January and February of last year, before the coronavirus took hold of the U.S.
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