Bankruptcy filings may increase in the coming months and years, depending on how things play out. As the economy struggles, people may find their existing debt unaffordable and may have no other financial options.
After all, financial experts are already warning that a recession is coming. Some may argue that we’re seeing the front edge of it right now.
If you’re thinking that we just barely got out of the last recession, that’s true. It happened about 11 years ago. The curve of that recession was a gentle U-shape. This means that it lasted for quite some time, but the decline was a slow one — as was the rise when it ended and the country finally pulled out of it.
That’s where they think things will be different this time. Experts think that this recession will be more severe than the last, and it will happen more quickly. Instead of that gentle U, things are going to fall off of a cliff. However, they also think that this recession may not last as long as the last one. That’s the good news.
Regardless, when these types of things happen to the economy, the financial world changes for millions of people. Even if the exact way that this plays out is a bit different than predicted, it does seem clear that things are going to be hard and a recession is going to hit. Consumers need to be ready to look into what that means for them.
For those for whom it means filing bankruptcy, it’s very important that they understand all of the options they have.