Las Vegas, NV bankruptcy attorney Brigid M. Higgins talks about the trends she sees in bankruptcy law. She mentions that bankruptcy, particularly Chapter 11 filings, has been notably subdued in the United States over the past two years. This trend coincided with the pandemic, when one might expect both individuals and companies to struggle financially. While that was true to some extent, government assistance programs for businesses, combined with creditors’ reluctance to pursue extreme measures such as foreclosure, significantly tempered the number of filings.

Looking ahead to 2022, the primary concern centers on inflation. As inflation rises, companies face increased financing costs and greater operational challenges, which can strain their ability to remain solvent. It is anticipated that Chapter 11 filings may increase, particularly in the second half of the year, as these financial pressures mount.