At first glance, news that bankruptcies are down in Texas sound like a good thing, but that could be deceiving.
According to the Star-Telegram, filings for bankruptcy in Texas are down 16%. Surprising considering the sever economic hit that has resulted from the coronavirus pandemic.
One reason for the decline is some people are getting temporary loan forgiveness. Overall, people who are in financial crises may be holding out hope that things will get better.
As the pandemic continues on, however, these people could start having to file for bankruptcy and a wave of filings could all be coming at once.