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24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
Pandemic led to a decrease in the number of bankruptcies in the US
The number of insolvency claims filed by the citizens of US has dropped markedly in 2021. The average number of bankruptcies fell to 1.21 per 1,000 people. In 2020, it was 1.71.
Such data are provided by experts of the American Bankruptcy Institute. Starting from 2012, the organization publishes monthly reports on the number of bankruptcy applications filed in accordance with chapters 7 and 13 of the relevant regulatory act.
Sabrina Carl from the University of Michigan notes that recent data show that the rate of individual bankruptcies was declining in the US in 2007-2009, which economists call the ‘Great Recession’. In 2016-2019 this figure has stabilized in some way at 2.5 per 1,000 inhabitants.
It may be that everything happened in connection with the incentive measures adopted by the federal authorities. In particular, state benefits were increased, a moratorium on forced eviction from the residential premises was introduced, as well as separate prohibitions on foreclosure.
ABI specialists note that the level of bankruptcies of individuals in 2021 decreased not only in every state of the US, but also in the island territories of Guam, the Virgin Islands and Puerto Rico. At the same time, significant differences remain between individual states.
The researchers note that many of the above mentioned states are located in the south, two states (Kentucky and Indiana) connect the US south with the midwest. Two states in the top 10 (Nevada and Utah), show a marked increase in the number of bankrupts in comparison with neighboring states, despite the fact that they are located in the west.
The lowest bankruptcy rates outside of Alaska are found in Vermont (0.44), Maine (0.48) and the District of Columbia (0.5). One of the reasons for this, according to experts, may be relatively small population of the territories.
Such data are provided by experts of the American Bankruptcy Institute. Starting from 2012, the organization publishes monthly reports on the number of bankruptcy applications filed in accordance with chapters 7 and 13 of the relevant regulatory act.
Sabrina Carl from the University of Michigan notes that recent data show that the rate of individual bankruptcies was declining in the US in 2007-2009, which economists call the ‘Great Recession’. In 2016-2019 this figure has stabilized in some way at 2.5 per 1,000 inhabitants.
Since the beginning of the pandemic in 2020, the number of bankruptcies has declined again, falling by 30% compared to the previous year.
In 2021, the decline continued. Experts attribute this to the weakening of the financial pressure of negative factors on a significant part of households.It may be that everything happened in connection with the incentive measures adopted by the federal authorities. In particular, state benefits were increased, a moratorium on forced eviction from the residential premises was introduced, as well as separate prohibitions on foreclosure.
ABI specialists note that the level of bankruptcies of individuals in 2021 decreased not only in every state of the US, but also in the island territories of Guam, the Virgin Islands and Puerto Rico. At the same time, significant differences remain between individual states.
The state of Alabama, where there were 3.13 bankruptcy filings per 1,000 residents, was at the highest level in 2021, while in Alaska the figure was ten times lower (0.31 filings per 1,000 residents).
The state of Alabama, has consistently ranked first in terms of the indicator since 2017, the researchers note. Among other top ten states with a high rate of bankruptcies, researchers name the states of Nevada (2.57), Tennessee (2.4), Indiana (2.17), Georgia (2.12), Mississippi (2.03), Kentucky ( exactly 2), Utah (1.97), Delaware (1.83) and Arkansas (1.82).The researchers note that many of the above mentioned states are located in the south, two states (Kentucky and Indiana) connect the US south with the midwest. Two states in the top 10 (Nevada and Utah), show a marked increase in the number of bankrupts in comparison with neighboring states, despite the fact that they are located in the west.
The lowest bankruptcy rates outside of Alaska are found in Vermont (0.44), Maine (0.48) and the District of Columbia (0.5). One of the reasons for this, according to experts, may be relatively small population of the territories.
27.01.2022
