Court Backlogs, Covid-19 Expenses Prompt Debt-Crisis Fears

Debt collection lawsuits have in recent years come to dominate court dockets around the country, but the pandemic-related shutdowns of state court systems could lead to a huge spike in cases in the coming months.

Couple that with an increase in the number of people who are falling behind on payments for medical bills, credit cards, and other debts, and a dire scenario develops, says Karen Andres, a director at the Aspen Institute’s Financial Security Program.

“We fear that this could just destroy people in a time where we really can’t afford to have more people suffering in this kind ...