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Experts at an American Bankruptcy Institute conference projected a spike in personal bankruptcy filings next year as the economic effects of federal stimulus funds wear off.
Data from the Administrative Office of the U.S. Courts show personal bankruptcies are projected to drop to 560,000 this year. That's the lowest number since 1985. However, analysts say an increase to more than 1 million filings could come in 2021.
“With the end of the CARES Act, there will be an uptick in filings," said Ed Flynn, an editor at the American Bankruptcy Institute Journal. "The only question is whether it will be a sharp uptick or a gradual one.”
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