COVID Relief Efforts Help Reduce Tucson Bankruptcy Filings in 2021 | Economic news
The number of bankruptcies filed in Tucson and across Arizona fell for the second straight year in 2021, reflecting a national trend as pandemic relief measures help keep businesses and consumers afloat.
Statewide last year versus 2020, bankruptcy filings of all types fell 27.5%, to 9,353, while filings in Tucson fell 23.7%, to 2,228, according to the Arizona District of the United States Bankruptcy Court.
Deposits in the Phoenix area fell 29%, while deposits at the court’s Yuma office fell 22.7%, the court said.
Nationally, the total number of bankruptcy filings in 2021 was down 24% from 2020, according to the American Bankruptcy Institute, a nonprofit group of bankruptcy professionals based in Alexandria, Va.
The drop in deposits in 2021 reflects government relief programs, moratoriums, lender deferrals and low interest rates intended to help families and businesses survive the COVID-19 pandemic, Amy said. Quackenboss, executive director of the American Bankruptcy Institute.
But 2022 could be a different story, she said.
“Consumers and businesses now face the new year with less government relief, fewer lender deferments, rising inflation, labor shortages and supply chain challenges. supply as the pandemic continues,” Quackenboss said.