So far, the impact of the COVID-19 shutdown during the past six months hasn’t led to an increase in activity in bankruptcy courts, the Fort Worth Star-Telegram/em> reported. There have been a handful of high-profile cases involving insolvent retailers such as JCPenney, Neiman Marcus and Fort Worth-based Pier 1 Imports, but overall the number of filings is significantly down. Personal bankruptcy cases filed January through June are down 16 percent in Texas, and 23 percent nationwide, compared to the same time last year, according to the American Bankruptcy Institute. Among personal bankruptcies, Texans filed 8,060 chapter 7 cases and 5,752 chapter 13 cases so far this year, according to ABI. Chapter 7 allows residents to clear most of their debts (with some exceptions, including student loans), while keeping their home and retirement plan. “The chickens are going to come home to roost, and it’s going to hit hard unless there’s another huge stimulus and people go back to work quickly,” said Reed Allmand, a lawyer who specializes in bankruptcies with offices in Hurst and Dallas. “It’s good news that bankruptcies are down, but I think most people are delaying filing bankruptcy even when they need it. A lot of this is kicking the can down the road.”
