Record Bankruptcies Predicted in Next Year as
Unemployment Soars
April 10, 2020, 5:00 AM
"Personal filings could reach 1 million, Fed economist says
‘The economy could deteriorate more than what we assume’
Bankruptcies related to Covid-19 shutdowns will set records in the next 12 months, according to Edward Altman, the professor emeritus at New York University’s Stern School of Business who developed a widely used method called the Z-score for predicting business failures.
“Whether it’s corporate bankruptcies or personal, this is unprecedented,” Altman said in an interview. “We will break the record in dollar amounts because there are much greater amounts of debt outstanding now than in any prior downturn.”
At this point, he isn’t predicting record-breaking bankruptcy rates in the next year despite the surge in unemployment. Almost 17 million Americans filed jobless claims over three weeks following nationwide business shutdowns.
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https://news.bloomberglaw.com/bankruptcy-law/record-bankruptcies-predicted-in-next-year-as-unemployment-soars