According to the American Bankruptcy Institute, a trade organization involved in bankruptcy proceedings for attorneys and professionals, 255,000 businesses filed for bankruptcy protection during the first five months of 2020. Most of those filings happened in March when coronavirus lockdowns unrolled across the United States.
By May, the total number of Chapter 11 bankruptcies was 48% higher than the previous year.
The ramifications of these closures and shutdowns include soaring unemployment rates, as illustrated in this graphic from the Bureau of Labor Statistics.
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