Why Bankruptcy Filings are Projected to Increase in 2022—And What Attorneys Can Do to Prepare
2021 saw a record decline in Chapter 11 filings, but that won't last forever. As the Omicron surge disrupts travel and return-to-office plans, bankruptcy lawyers are preparing for a busy 2022. We have discussed with a number of bankruptcy attorneys to gather what they believe will happen in 2022, and how they are intending to create ease in the new year.
How 2020 Influenced 2021 Bankruptcy Filings: Our Findings
In 2020 the number of bankruptcy filings increased dramatically due to the pandemic. As a result, the government put memorandums in place to slow bankruptcies and to protect those from losing their homes and businesses.
According to the Administrative Office of the U.S. Courts, the September 2021 annual bankruptcy filings totaled 434,540, compared with 612,561 cases in the previous year. Over the 12-month period, personal and business bankruptcy filings fell 29.1 percent. A steady decline in filings has continued since the COVID-19 crisis began.
Business filings fell 27.9 percent, from 22,391 to 16,140 with the year ending September 30, 2021. Non-business bankruptcy filings fell 29.1 percent, to 418,400 compared with 590,170 in the previous year.
What Consumers and Law Firms Should Expect in 2022
Government assistance programs created during the pandemic, are either expired or are planned to expire within the next year. These changes will shake up how the bankruptcy industry has been operating and is driving what they expect to see in 2022.
A recent report from ATTOM Data Solutions states that it won't be long until there is an upswing in foreclosure activity since the moratorium on foreclosures was lifted in July 2021. Default notices, bank repossessions, and scheduled auctions spiked by 34% in the third quarter of 2021 and were 67% higher than the third quarter of 2020. After nearly 18 months of a foreclosure moratorium, industry experts are confident that this uptick will continue well into 2022.
How Our Legal Direct Mail Marketing Team Can Help
For years, Key Dynamics has worked with Bankruptcy Lawyers to keep a consistent flow of prospective clients by connecting our clients with those who need their services. From bankruptcy, foreclosure, wage garnishment cases, and other civil litigation matters, we help provide bankruptcy lawyers with the right leads at the right time. We are even able to target certain debt ranges or plaintiffs.
We achieve this through our direct mail campaigns that are flexible, easily measurable, individualized, and cost-effective. We help you determine the focus of your direct mail campaign and then design eye-catching personalized letters for your outreach. The letters will carry your firm's message to prospective clients in an appealing, professional, and tangible form that can help your firm stand out.
The attention on mail has increased throughout the pandemic. Although websites and digital marketing have become prevalent in the legal community, our targeted direct mail campaigns continue to deliver excellent results and return on investment for bankruptcy attorneys. It is easy to understand why: most people look through their mail every day, and an attractive mail piece in their hand is tougher to ignore than text on a screen.
You can read more about how our 2021 case study results showed our campaigns providing high-value calls for under $24 per call, making it one of the most effective return-on-investments for clients using targeted data solutions with direct mail.
Creating Ease for Attorneys Who Handle Civil Debt Cases: Bankruptcy Notices
Our direct mail campaigns help reduce marketing efforts on law firms, and our team has developed another way to provide more ease to their everyday routine by mailing bankruptcy notices.
Key Dynamics operates as a third-party bankruptcy notice provider for law firms, handling all of the work of compiling addresses, printing and mailing notices via our easy and affordable service. We assist debtor attorneys, creditor attorneys, panel trustees, and chapter 13 trustees with the required notice and service requirements under Fed. Rule Bankr. Proc. 7004.
Our team performs multiple inspections to confirm your documents match the intended debtor and case number. Reaching the correct person is crucial to your filing, and mistakes can have considerable ramifications.
We send all notices within 24 hours and via First-Class or certified mail to comply with the bankruptcy code. At all times, we remain up-to-date about new laws and requirements for our clients.
Are you ready to take your law firm to the next level? Reach out and receive a sample of our campaigns, along with an estimated prospect database that your company could expect to reach on a monthly basis. On average, our direct mail campaigns bring a 3-5% call return rate.
At Key Dynamics, we welcome any feedback, advice, or business consultation our clients may have. Our dedicated team is always available to answer any questions you may have. Drop us a line: email@example.com or give us a call today at (888) 855-0402.