Bankruptcy filings took a nosedive over the past year that resulted in the lowest number of 12-month filings since 1985, the Administrative Office of the U.S. Courts announced Wednesday.
Personal and business bankruptcy filings in the U.S. plummeted 32.2% for the 12-month period ending June 30, 2021, the courts reported. Annual bankruptcy filings totaled 462,309, compared with 682,363 cases the previous year.
Similar lows were seen in the number of business filings, which fell 17.7% from 22,482 to 18,511 in the year ending June 30, 2021.
During the same time, non-business bankruptcy filings fell 32.7%, from 659,881 to 443,798.
The first full 12-month period beginning after the COVID-19 pandemic jolted the national economy, according to the report. Increased government benefits, as well as moratoriums on evictions and certain foreclosures spurred by the pandemic, may have eased financial pressures in many households that prevented them from filing for bankruptcy, the report said.
The U.S. District Court for the Northern District of Indiana saw 6,191 bankruptcy filings during the 12-month period ending June 30, 2021. During the same period last year, it saw 8,223 filings.
In the U.S. District Court for the Southern District of Indiana, filings totaled at 9,581 for the 12-month period ending June 30, 2021, compared to 12,498 for the year ending June 30, 2020.