Acclaimed Bankruptcy Attorney, Charles Daff, Examines Lower Bankruptcy Rates Despite the Pandemic
LOS ANGELES, CA, UNITED STATES, April 1, 2021 /EINPresswire.com/ -- The pandemic had the kind of consequences that economists dread. The initial decline in economic output was greater than that of the Great Depression. Job losses that surpassed all previous records. But there is one economic measure that appears to be drawing a more positive picture: bankruptcies, which have so far trailed their total from the year before the pandemic.
Acclaimed bankruptcy attorney, Charles Daff sheds some light on to why this is happening. "The creditors response is to renegotiate and to forebear on debt rather than enforce liabilities to its fullest exent under law," states Charles Daff. "The greatest example of this response is in the area of the moratorium against landlords and lenders to evict tenants or foreclosure on homes. The moratorium has shifted the risk of loss to the landlords and banks by the action of state and federal governments."
Despite COVID-19, the number of personal and company bankruptcies filed in the United States decreased by nearly 30% from 2019. According to U.S. Bankruptcy Court figures, the downturn was largely led by a 31% drop in personal bankruptcies, as well as a nearly 5% drop in filings attributable to company debts.
"The moratorium allows renters and homeowners to shift their payment on these obligations to a sometime in the future event. The timing to extinguish the moratorium by government for landlords and lenders will eventually come to call in past due payments, NOW, and creates a potential 'debt time bomb'," concludes Charles Daff. "Until then, the Bankruptcy Court remains open for consumers and businesses for that day."
Contact Charles W. Daff, Bankruptcy Attorney
Charles W. Daff has nearly 43 years of experience and was granted the “Super Lawyer” award, which is given to the top 5% of Southern California attorneys. We are dedicated to serving our clients. If you reside in Orange County, Riverside County, San Bernardino County or Los Angeles County and are considering filing for bankruptcy, contact Charles W. Daff, Bankruptcy Attorney today.