Bankruptcy filings were 760,000 back in 2019. In 2022 they are down to 380,000. Filings dropped during the COVID epidemic. Moratoriums preventing landlords from evicting tenants, along with mortgage deferments, mortgage modifications, and COVID relief funds probably were the reason for the drop in bankruptcy filings. Credit cards have also tightened credit, which means less people have large credit card balances. Credit card companies and mortgage lenders have been the main force driving up bankruptcy filings.

In other news, the Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). The application will be available no later than when the pause on federal student loan repayments terminates at the end of the year.

In Connecticut news, the State of Connecticut has significantly increased its homestead exemption to $250,000 in one’s primary residence. For a married couple, jointly owning the home, this means they now can preserve up to $500,000 in the equity in their home. Previously the exemption was only $75,000.00. The State also increased the motor vehicle exemption to $7,000, and created an exemption for the cash surrender value of life insurance policies.