South San Francisco Area Bankruptcy Filings Slowed Amid Pandemic Last Year Here's how the pandemic affected bankruptcies in San Mateo County. Experts warn of a likely surge in coming years.

Patch South San Francisco ^ | 3-12-2021 | Patch Staff

[Vendome]

The coronavirus pandemic has caused sharp swings in the economy over the past year, thrusting many businesses and families into economic uncertainty and in some cases outright collapse. Even so, the number of national bankruptcies filed in 2020 was the lowest since 1986 and nearly 30 percent lower than in 2019.

But many experts expect bankruptcies to increase in the coming years. The federal court system was closed near the beginning of the pandemic, which delayed filings for months. Moreover, bankruptcies also tend to be "lagging indicators" of economic distress because of the complex legal process involved; the Great Recession began in 2007 but bankruptcies didn't peak until 2010.

"You see these businesses that ultimately go bankrupt were probably in trouble six months or eight months or a year before they file for bankruptcy," said Fred McKinney, director of the People's United Center for Innovation & Entrepreneurship at Quinnipiac University in Connecticut.

[Vendome]

The last line is the Boom! in this article.

So, if BK's were down from the prior year due to courts being closed and businesses begin their troubles on the down slope 6-8 months before they file for BK then we have probably several years worth BK's coming as the courts are now backlogged...

Good Gavin and health? directors around the state.

Wanna try gargling crunchy peanut butter as part of your encore?

[PAR35]

Blocking evictions and foreclosures postpones a lot of bankruptcies.

Liken it to Bush’s chairman of the FDIC. He throttled back bank examinations, and there were an insignificant number of bank failures while he was in office. Then his replacement let the examiners do their jobs, and the result was the 2008 banking crisis.

De flood, it be a’comin.

[Starcitizen]

Eviction being blocked don’t block debt collections by other means, including debt collectors. So at least property management companies are definitely getting judgements.

Just fought and won a $15000 judgement against me for past due rent and fines for non-payment of rent from April to August. Got the judgement overturned and it removed from my credit reports. ($7500 in rent and $7500 in past due fines ($75 a day))

Seemed the greedy property management company (AMCRENT LLC)
fumbled the ball badly. My lease expired in March and I moved out in March. Their local property management office on the apartment property itself was closed due to covid from mid-March to August. They did not offer end-of-lease inspections as well due to covid. Dropped the keys in the office mail slot along with my intention not to renew in mid-March 2020, a mere 5 days after my lease renewal notice. (they were going to jack up the rent 35% on everyone).

This is one of the apartment management companies the fill the eviction docket in Boulder (and doubt other counties). They tried to evict me in 2019, but I won. They were charging $75 a day late fees for late utility payments (security and heat). A judge voided the late charges. No wonder they have to offer free 1 or 2 months rent all the time.

Yeah personal bankruptcies due to this one thing alone will skyrocket.

[Vendome]

I know of a economist who says we will be dealing with this for 10 years...

[ronnie raygun]

on purpose how is anyone surprised?

[PAR35]

Yeah personal bankruptcies due to this one thing alone will skyrocket.

That won't be the big deal. So they get judgment for 12 months, or 18 months or whatever of unpaid rent. Getting the judgment isn't that hard. Collection is the difficult part. They'll either have to recognize the loss at some point (which will help with taxes but hurt their position) or they'll run out of money to pay their lenders and taxes. It's the wave of commercial defaults (further fueled by commercial tenants giving up space) that's going to impact the economy in a macro sense. The big guys are too big to fail (and see recent moves in the banking industry as players seek to reach that level), but the mid sized banks are going to take a hit.

[systemjim]

The coronavirus pandemic has caused sharp swings in the economy over the past year, thrusting many businesses and families into economic uncertainty and in some cases outright collapse.

Oh, how I hate journalists. Why do they continue to perpetuate this myth? The verifiable truth is that the pandemic didn't cause any harm to the economy. It was caused by the imperious, unconstitutional shutdown edicts by Democrat Mayors and Governors.

[Starcitizen]

It’s also going to make a whole segment of society unrentable.

I’m on the rental shitlist (run by the scumbuckets at UDR) even after getting the judgement removed and and it cleared from my TransUnion (it never went on the others).

These rental blacklist companies are not bound by consumer protection laws

I’ve been living in Airbnbs as no apartment will take me as I’m considered a problem tenant (prevailed twice in court fights). Guess that don’t want tenants that fight back and win.

[Starcitizen]

That won’t be the big deal. So they get judgment for 12 months, or 18 months or whatever of unpaid rent. Getting the judgment isn’t that hard
————-
It will absolutely affect the tenants for 7 years or longer. And judgements can be renewed.

Credit will be shot
Job opportunities gone (a credit check is often done pre-hire, with more and more companies.
Impossible to rent (rental blacklist)
Can’t buy a car unless it’s a a “buy here, pay here” place with 36% to 48% APR

I was hired then unhired at 2 jobs since covid due to my Checkr background check. It did list my judgement and a ranged FICO score (it was a yellow flag in their report)