A recent Forbes article outlined two possible forecasts for bankruptcy filings as a result of COVID-19. While some experts have predicted a surge, others have taken a more measured approach, claiming that "a moderate and gradual increase in bankruptcies seems equally, if not more, likely."
In an interview with Forbes, Professor Bob Lawless described his views on the subject as contrarian.
“Are bankruptcies going to increase? Probably,” Lawless said. “But people need to be more modest about their predictions. I think it’s pretty likely that bankruptcies are going to go up. I don’t think it’s an absolute certainty.”
Lawless said his research indicates that bankruptcy is tied to debt levels, not unemployment rates. “People like to talk about unemployment,” he said. “But if people don’t have debt, they don’t file for bankruptcy. It doesn’t put money in your bank account or food on the table or find you a job.”
Read the full article at forbes.com.