“Increasing interest rates and high inflation have the US economy facing a potential recession in 2023. More and more businesses are choosing to decrease their employment rates, inventories, and construction projects to prepare for the worst.”
Why Chapter 13 Bankruptcy Filings Increased Last Year?
In 2022, Chapter 13 bankruptcy filings increased by 26.6% while business and other personal bankruptcy filings fell by 11.7%. Chapter 13 bankruptcy was established to provide debt relief to individuals who are struggling financially by giving them the grace to pay off their debts without the worry of losing their assets to creditors. In this article, we will discuss what is Chapter 13 bankruptcy and how it works as well as why there was an increase in Chapter 13 bankruptcy filings in 2022.
