Despite COVID-relief efforts, bankruptcy filings continue
Posted October 9, 2020 9:13 a.m. EDT
CHARLOTTE, N.C. — Bankruptcy filings in North Carolina have fallen about 30% during the coronavirus. pandemic.
But The Charlotte Observer reports that more than 3,000 people still filed for bankruptcy from April through September.
And that worries experts who say the dip in filings is just a brief reprieve from an expected deluge once some of the COVID-relief efforts subside.
Federal and local officials have been trying to provide assistance to those who are financially struggling. They've postponed evictions, prevented water from being shut off and delayed foreclosures.
There also have been extra unemployment benefits. And $1,200 checks were sent to most Americans.
But the underlying issues that drive bankruptcies have gotten worse in the pandemic. And they could come into stark relief once the virus-related assistance is gone.
For example, health care is still unaffordable for many Americans. And low wage work often can’t cover expenses like car payments and school supplies.