The end of federalaid is putting many Americans and businesses under mounting financial pressure, leading to a spike in bankruptcies.
Total bankruptcy filings in January shot up 19% in January to 31,087, up 19% from a year ago, according to data from Epiq, a legal research firm. The number of Americans who filed for bankruptcy across Chapters 7, 11 and 13 shot up 20% in January from a year ago.
The surge in filings comes as rising interest rates and high inflation continue to stress household budgets.
“There’s no cash coming in from the government anymore,” Amy Quackenboss, executive director at the American Bankruptcy Institute, told CBS MoneyWatch. “Some people are finally experiencing that economic crunch. They’re having to pay their mortgage, their car payments. There are several people who haven’t been able to weather that storm.”
By KHRISTOPHER J. BROOKS
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