Bankruptcies in the COVID-19 Pandemic

During the COVID-19 pandemic, many businesses and individuals faced financial hardship due to economic shutdowns, reduced consumer activity, and lost income. As a result, some companies were unable to meet their debt obligations and filed for bankruptcy—legal processes that help manage or eliminate debts. The pandemic caused an increase in bankruptcy filings, especially among sectors hardest hit like retail, hospitality, and travel. This wave of bankruptcies reflected the widespread economic strain, but also prompted government relief measures aimed at helping businesses and individuals recover from the financial fallout of COVID-19.