Household bankruptcy filings are climbing

Household bankruptcy filings are ticking up.

Why it matters: The uptick shows the impact of the roll-off of COVID-era fiscal support like stimulus checks and expanded unemployment benefits.

  • The flow of federal dollars that started soon after the pandemic helped some Americans stave off bankruptcy, at least for a while.

Details: In October, there were 14,161 new cases, a 27% increase from the same month a year ago, according to Epiq Bankruptcy Analytics.

Yes, but: Don't fret about the state of the American consumer just yet — bankruptcy filings remain far below pre-pandemic norms.

  • Back in 2019, the monthly average was 23,570, or about 66% higher than last month's tally.

The bottom line: Analysts expect that as the Fed raises interest rates, events like bankruptcies are bound to head back to more normalized levels.


Originally published on Axios.com