"2023-2024 Forecast: US Bankruptcy Filings Soar with Employee Safeguards Intact"

U.S. bankruptcy filings increased by 18% in 2023, driven by higher interest rates, stricter lending conditions, and the phasing out of pandemic-era support, with a total of 445,186 filings. Commercial Chapter 11 filings saw a significant rise of 72%. Despite the increase, bankruptcy levels are still below pre-pandemic figures. The trend is expected to continue into 2024, influenced by the end of pandemic stimulus, increased borrowing costs, and record-high household debt. However, financial conditions showed signs of easing in the fourth quarter of 2023 as the Federal Reserve hinted at the end of its rate-hike cycle.