Interest in consumer bankruptcy
There is a systematic increase in interest in consumer bankruptcy.
Experts forecast that this year the number of consumer bankruptcies will be close to 20,000. Already, that is by the end of May, over 7.6 thousand consumer bankruptcies have been announced. Two issues are identified among the reasons for the growing interest in this type of bankruptcy. First of all, the liberalization of regulations (we wrote about it here), which simplified the rules for taking advantage of the bankruptcy option. Second, the coronavirus pandemic has significantly worsened the financial situation and has forced some to consider and take advantage of the bankruptcy solution. It is also worth adding that a trend has been noticed in the form of using consumer bankruptcy not by consumers, but by entrepreneurs who are financially responsible for the obligations of their company.
It is worth emphasizing that easier declaration of bankruptcy does not mean complete cancellation of debts. Debts can be reduced, but still have to be paid. It may protect you from entering into bankruptcy by entering into arrangements with creditors, but as experts point out, this option is not used on a massive scale.
In December, further changes should be expected following the entry into force of the National Register of Debtors, which will record consumer bankruptcy proceedings.