W. Ron Adams Law, PSC

Why Bankruptcy Filings are Expected to Increase in 2022

When it comes to bankruptcy filings, specific trends start to shine through. It’s important to be aware of these geographic and financial trends as soon as they arise.

By 2022, we expect the bankruptcy filings to start to ramp up in Kentucky.

Bankruptcy Stats and Information for Kentucky in 2020

Total Filings – 11,431
Chapter 7 – 7,764
Chapter 11 – 46
Chapter 13 – 3,613

Bankruptcy Stats and Information for Kentucky in 2021

Total Filings – 8,105
Chapter 7 – 5,333
Chapter 13 – 2,752

bankruptcy 2022 predictions

Different Variables that Have Affected Bankruptcy Filings

Pandemic

The pandemic has led to a seismic shift in the financial landscape of Northern Kentucky. It has created a long list of businesses trending in the wrong direction due to the sudden hit to their business. Many have not recovered, and this will not go away in the coming year.

No Work Orders

Work orders were coming through easily over the past few years, but that will not be the case in 2022. A lot of work orders are getting delayed, leading to situations where businesses don’t have any other option but to go bankrupt.

While some businesses are getting through this situation, others are getting stuck. It comes down to the company itself and its response to such a scenario.

However, it is assumed the numbers will rise because of the lack of work orders. Only a few will survive this type of hit.

Stimulus Checks

Stimulus checks have created a situation where a lot of businesses are struggling. Due to the lack of people who are willing to work, it also creates a situation where the economic landscape has changed for businesses.

While this might not be the leading factor for businesses filing bankruptcy documents, it is one of them. It’s important to keep tabs on this in Kentucky as it will become a pattern.

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Why Experts Believe Bankruptcy Filings Will Increase in 2022

  • Many changes could happen in the world of business for those residing in Kentucky; due to the amount of pressure put on the market over the past year heading into 2022
  • While there was a tremendous impact on business in 2021, it is still lingering right now. The aftermath of a pandemic such as this is something the world has yet to deal with, and it is something that is going to take a bit of time to figure out, and that is why there will be more bankruptcy filings
  • Those filings will add up, and it is assumed the number will rise rapidly due to this

To learn more about W. Ron Adams Law, please take the time to reach out to the team at (859) 727-1000. This is the ultimate law firm for those who want tangible results with the help of a qualified team.

LET OUR EXPERIENCE GUIDE YOU

Call to schedule your Free Bankruptcy Consultation!