"Paula Barbaruolo, who runs a law firm in Latham and is also an adjunct professor at Albany Law School, says that several factors play into why bankruptcy filings are lower than normal.
First off, she said, consumers have been locked up at home, and they are focused more on their health and safety and navigating this strange new world. Bankruptcy is the last thing on their minds, and working with a bankruptcy lawyer by teleconference is a slow-moving process if they do decide to file.
And the COVID-19 relief bills have put a lot of money into people's pockets, giving them a cushion from the economic turmoil. And bank foreclosures and evictions have been banned for the time being, although those provisions will ultimately end, leading to more bankruptcies.
"We are in a state of temporary protection, but that's going to end," Barbaruolo said. "Unfortunately, the mortgage will need to get paid, or the rent."