Originally posted by bcohen
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Anyone else think the end of the rental moratorium will mean surge in Chaptre 7?
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Remember that smart people file for bankruptcy protection when their circumstances have improved, and they have something to protect. A person who was working a low-wage job, and then fell behind on their rent and other debts due to the pandemic is unlikely to benefit from declaring bankruptcy at this time. If such a person was able to find a new job with decent pay, they'd be chipping away at their debts, and would likely not need or want to declare bankruptcy. On the other hand, if such a person is still unemployed, or working for low wages, bankruptcy is unlikely to help.
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I think that most believe that there will be an increase in bankruptcy filings, just as there were in 2008-2014 during the housing crisis. It may not be as big as that housing crisis, but there will likely be a good increase in filings.
The government has $45 billion or so to help the landlord and tenants get back to normal. Unfortunately, this doesn't deal with the tenant's other debts (credit cards, etc).
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Anyone else think the end of the rental moratorium will mean surge in Chaptre 7?
There are renters who have not paid anything for over a year, and they are still legally on the hook to pay the back rent.
I can only imagine how many of these folks will just file for Chapter 7; it's going to be a bloodbath.Tags: None
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