COVID-19 is predicted to cause a new wave of Indianapolis bankruptcy cases. Consumer debt loads were already reaching record highs. Indianapolis, now facing COVID-19 job interruptions, will likely see large defaults in debt repayment. A new wave of bankruptcy will likely follow.
Last year in 2019, the world’s debt load reached record numbers at over $250 trillion. A few important U.S. debt statistics from 2019 will reveal the extent of the COVID-19 bankruptcy danger. For instance, the 2019 mortgage loan debt for the U.S. alone was $9.6 trillion dollars. The auto loan record high last year was about $1.3 trillion. Credit cards were at $830 billion. The list goes on and on – all record high numbers. Student loans, personal loans, all other forms of debt: it’s all the same. Collectively, our nation is in more debt than ever.
The two most common immediate causes of bankruptcy are job loss and medical problems. COVID-19 has the potential to cause major, ongoing disruption to the employment rate of Indianapolis. Many businesses will not reopen after COVID-19, causing thousands of Indianapolis residents to have major interruptions to their regular income.
COVID-19’s will also cause massive disruption to several well-established industries. Conventional competitors will die off entirely as online retailers and adaptable businesses expand their reach. This major economic restructuring will cause long periods of job loss and unemployment. Record defaults will certainly follow the multi-faceted disruption that COVID-19 has caused.
Record debt loads are evidence that a “correction” to the economy is likely soon to follow. Although the ever-expanding debt market is currently the only way to perpetuate the U.S. system, the expansion of debt-based currency will not continue unchecked forever. COVID-19 coupled with bankruptcy will be a correction to the system. The only question is how far this correction will go. The other question is whether the current debt-based monetary system can handle COVID-19. The following bankruptcy defaults will stress the U.S. dollar and the bankruptcy system possibly further than it has ever been stressed before. Indianapolis may have quite a way to go before the COVID-19 debt crisis will truly pass.