Inflation Impacts Bankruptcy

How does the current inflation impact bankruptcy?

Current inflation impacting bankruptcy

If you’ve been to a grocery store or had to fill up on gas in the past couple of months, you’ve felt the pain of inflation. In fact, we are making history.  Over the past 12 months, the consumer price index (CPI), which measures costs across dozens of consumer items, increased by 7 percent! That is the largest rate of inflation since June of 1982.  

Individuals and families living off a fixed income can find themselves in an extremely challenging situation due to inflation. There comes a point where necessities such as keeping a roof over your head, food on the table and a means of transportation are unaffordable. The result is having to prioritize life’s priorities, which is a far from desirable scenario. Although there are likely many individuals who are having to pick and choose which bills to pay, the number of bankruptcy filings have remained low. However, this cannot go on forever. 

For those who were already struggling to make ends meet prior to or during the pandemic, this could very well be the straw that breaks the camel’s back. Or in this case, the straw that breaks the bank. Gone are the days of stimulus money and moratoriums that many people were dependent on to avoid foreclosures and evictions. Unfortunately, it appears to just have postponed the inevitable. Although there is no foolproof way to predict the future of the economy, all signs (and data) point to a path paved with an increase in bankruptcy filing. 

Amidst all this talk of doom and gloom, there is good news — bankruptcy isn’t as bad as it sounds! That’s not to say you’ll want to advertise your personal, financial struggles. However, you won’t be alone as you turn to a viable option for getting a second chance at that elusive fresh start. 

Let the expert team at McCune Legal help guide you through the bankruptcy process. We have an innate understanding of how the system works and are here to ensure you get the support and the solution you need. Contact us today for a FREE consultation.