Anyone else think the end of the rental moratorium will mean surge in Chaptre 7?

[joshuagraham]

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.

[justbroke]

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).

[bcohen]

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.

[shipo]

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.

From a different perspective, I got behind, way behind, during the Great Recession, and then landed a good job which turned into a great job which set me up for an even better one. When I got the "good" job I filed for my Chapter 13; why then? Because as good as the job was, my debt was several times my gross annual income. I suppose in a way I did have something to protect, my ability to pay rent and afford clothes, food, transportation, and any other necessities of life.