The number of commercial bankruptcies in the United States has grown 33 percent since the beginning of 2020. The recession caused by the coronavirus pandemic has hit small businesses hard, Reuters writes.
A monthly report from the law firm Epiq says 747 bankruptcy filings were filed last month (up from 420 filings a year earlier). However, the number of applications from individuals has decreased. Government programs helped prevent a wave of individual bankruptcies that could sweep the country, experts say. The number of non-commercial applications has dropped 43 percent in 2020.
In the first five months of 2020, 98 companies with liabilities exceeding $50 million filed for bankruptcy in the United States. A powerful wave of bankruptcies was also predicted by Germany, which is the largest economy in Europe. According to analysts, over 29,000 local companies will go bankrupt in the country in 2020 amid the coronavirus pandemic. This is 54 percent more than in 2019.
Earlier it became known that the Russians were massively denied personal bankruptcy without trial under a simplified procedure, which has become possible since the beginning of September. Within a month, only 20.7 percent of applicants managed to legally write off debts.