Did you know America is going bankrupt?

Most people don’t. Maybe the saddest part about our country’s state of affairs is that all our vitriol and dysfunction has come at a time when we aren’t even addressing our biggest problems.

Which sectors are seeing the biggest spikes in bankruptcy filings?

Not surprisingly, some sectors hit the hardest by the pandemic are seeing the biggest spikes in bankruptcy filings. For instance, aviation bankruptcy filings are up 110% on an annualized basis, while oil and gas filings have climbed 45%, Jefferies said. Entertainment bankruptcy filings are also up 22%.

How does bankruptcy work?

It offers a fresh start for people who can no longer afford to pay their bills. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of the outstanding debt.

What happens if you go bankrupt?

If you work in certain professions like the legal or financial industry, it's also possible you'll lose your job. And if you own a business, it might be sold off to cover your debts. Your bankruptcy will also be published publicly on an insolvency register for 12 months, although there can be exemptions for people who are at risk of violence.