%1

The end of federal pandemic aid is putting many Americans and businesses under mounting financial pressure, leading to a spike in bankruptcies, CBSNews.com reported. Total bankruptcy filings in January were 31,087, up 19% from a year ago, according to data from Epiq Bankruptcy Analytics. The surge in filings comes as rising interest rates and high inflation continue to stress household budgets after government pandemic aid programs expired. The federal government sent $817 billion in stimulus payments to Americans, according to a New York Times estimate, but that lifeline ended in March 2021. Congress similarly doled out $800 billion in Paycheck Protection loans to companies large and small before that program ended in May 2021. "There's no cash coming in from the government anymore," Amy Quackenboss, executive director at the American Bankruptcy Institute, told CBS MoneyWatch. "Some people are finally experiencing that economic crunch. They're having to pay their mortgage, their car payments. There are several people who haven't been able to weather that storm." Difficulty hiring in a tight labor market, the ongoing war in Ukraine and fears of a recession have also prompted some companies to file for bankruptcy, Quackenboss said. That said, while bankruptcies have increased, they still haven't reached pre-pandemic levels, she added.