Bankruptcy filings continue to plunge, dropping nearly 30% for the 12-month period that ended on September 30. But the downtrend could be the calm before the storm.
Personal and Connecticut bankruptcy business filings totaled 434,540 from September 30, 2020 to September 30, 2021, a decrease of 29.1% from the 612,561 filed in the previous year, according to data from the American courts.
In the 7e Circuit, Connecticut bankruptcy filings reached 46,992 for the year ending September 30, 2021. This is a decrease of 31.6% from the 68,656 filed during the year ending September 30 September 2020.
Districts in southern and northern Indiana saw a decline in bankruptcy filings.
The Southern District totaled 9,196 bankruptcy filings for the 12-month period ending September 30, down 19.8 percent from 11,465 filings the previous year.
Likewise, the Northern District recorded a total of 5,865 bankruptcy filings for the year ending September 30. This is a decrease of 22.2% from the 7,541 filed in the year ending September 30, 2020.
A trio of academics predict that an increase in bankruptcy filings will require more judges.
An article written in 2020 for the Harvard Business Law Journal analyzed what would be needed to manage the bankruptcies caused by the financial upheavals induced by the pandemic. To keep the judiciary’s workload from surpassing the level reached during the Great Recession, professors found in a worst-case scenario that the bankruptcy system would need 246 temporary judges, while in the best-case scenario the bankruptcy system would need 246 temporary judges. system would still need 50 more temporary judges.