21 States With the Highest Personal Bankruptcy Rates Related to COVID-19
Americans are under financial strain from COVID-19, especially in these states.
COVID-19 has taken a toll on the U.S. economy, and millions of Americans are feeling the financial strain. While some people will be able to recover fairly easily, others may find themselves falling further behind in their finances and in need of serious help.
Personal bankruptcies are an option of last resort for consumers who can’t pay their debts, but they also offer consumers a second chance financially. Many consumers feel embarrassed about the prospect of filing for bankruptcy, but bankruptcy protections exist for a reason.
“Individual bankruptcy law, in particular, is designed to help people when they are at a vulnerable time and to encourage risk-taking, such as entrepreneurship, that is vital to economic growth,” explains Shawn A. Cole, the John G. McLean Professor of Business Administration at Harvard Business School.
Whether you file for Chapter 7 bankruptcy to liquidate assets or Chapter 13 bankruptcy to restructure debt, you can reset your finances. It can take time, but even after bankruptcy, you can rebuild your credit and gain access to credit cards, auto loans and even mortgages.
In the midst of the pandemic, you are not alone, and you can emerge from financial distress on a new, more stable financial path. These 21 states have the highest personal bankruptcy rates of the COVID-19 era.
1. Alabama
- June filings: 1,316
- COVID-19 bankruptcies: 6,168
- COVID-19 filings for every 100,000 residents: 125.8
2. Mississippi
- June filings: 622
- COVID-19 bankruptcies: 3,010
- COVID-19 filings for every 100,000 residents: 101.1
3. Tennessee
- June filings: 1,515
- COVID-19 bankruptcies: 6,725
- COVID-19 filings for every 100,000 residents: 98.5
4. Indiana
- June filings: 1,395
- COVID-19 bankruptcies: 6,003
- COVID-19 filings for every 100,000 residents: 89.2
5. Kentucky
- June filings: 882
- COVID-19 bankruptcies: 3,803
- COVID-19 filings for every 100,000 residents: 85.1
6. Arkansas
- June filings: 543
- COVID-19 bankruptcies: 2,541
- COVID-19 filings for every 100,000 residents: 84.2
7. Utah
- June filings: 670
- COVID-19 bankruptcies: 2,691
- COVID-19 filings for every 100,000 residents: 83.9
8. Ohio
- June filings: 2,096
- COVID-19 bankruptcies: 9,604
- COVID-19 filings for every 100,000 residents: 82.2
9. Illinois
- June filings: 2,087
- COVID-19 bankruptcies: 10,220
- COVID-19 filings for every 100,000 residents: 80.7
10. Georgia
- June filings: 1,779
- COVID-19 bankruptcies: 8,366
- COVID-19 filings for every 100,000 residents: 78.8
11. Nevada
- June filings: 587
- COVID-19 bankruptcies: 2,250
- COVID-19 filings for every 100,000 residents: 73.0
12. Missouri
- June filings: 1,059
- COVID-19 bankruptcies: 4,433
- COVID-19 filings for every 100,000 residents: 72.2
13. Michigan
- June filings: 1,547
- COVID-19 bankruptcies: 7,021
- COVID-19 filings for every 100,000 residents: 70.3
14. Oklahoma
- June filings: 640
- COVID-19 bankruptcies: 2,682
- COVID-19 filings for every 100,000 residents: 67.8
15. Wisconsin
- June filings: 903
- COVID-19 bankruptcies: 3,938
- COVID-19 filings for every 100,000 residents: 67.6
16. Virginia
- June filings: 1,058
- COVID-19 bankruptcies: 5,340
- CCOVID-19 filings for every 100,000 residents: 62.6
17. Arizona
- June filings: 1,061
- COVID-19 bankruptcies: 4,540
- COVID-19 filings for every 100,000 residents: 62.4
18. Maryland
- June filings: 772
- COVID-19 bankruptcies: 3,738
- COVID-19 filings for every 100,000 residents: 61.8
19. Nebraska
- June filings: 248
- COVID-19 bankruptcies: 1,074
- COVID-19 filings for every 100,000 residents: 55.5
20. Florida
- June filings: 3,149
- COVID-19 bankruptcies: 11,679
- COVID-19 filings for every 100,000 residents: 54.4
21. Idaho
- June filings: 234
- COVID-19 bankruptcies: 971
- COVID-19 filings for every 100,000 residents: 54.3
Deb Gordon is a writer for MoneyGeek.