With the rise of COVID-19 came the anticipated rise in bankruptcy filings associated with a beleaguered economic outlook. But the anticipated wave did not happen in 2020 or 2021, largely due to federal stimulus payments; mortgage, loan, and rent offsets; unemployment insurance enhancements; the CARES Act, and other government relief programs. Now that many of those programs have ended or are waning, will 2022 see the delayed wave of bankruptcies?
According to a new SRS Acquiom Barometer™ survey, the majority (65%) of respondents believe that bankruptcy filings will increase in the coming year. Between January 19 and January 28, SRS Acquiom asked law firms, investment banks, agents, as well as bank and non-bank lenders for their views. More than 60 participants provided insights on the following topics:
- Which of the following statements best characterizes your beliefs about bankruptcies in the coming year, compared to 2021? Bankruptcy filings will increase, bankruptcy filings will remain about the same, don’t know, or bankruptcy filings will decrease.
- How do you believe bankruptcy volume will evolve this year?
- What market indicators are your monitoring to support your viewpoint?
- Which bankruptcy categories are you watching in 2022?
- With respect to views on bankruptcy filings in 2022, which market sectors do you anticipate will increase compared to 2021?
- Do you consider your organization prepared for a wave of bankruptcy filings?
- How will you or your clients prepare for a wave of bankruptcy filings?
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