Bankruptcy Spike Expected as Covid Eviction Halt Nears End

An unprecedented amount of unpaid rent is making bankruptcy a more attractive option for millions of Americans grappling with paying their landlords as Covid-19 relief measures come to an end.

Renters generally can’t use bankruptcy to avoid eviction unless they can work out a plan to pay back accrued rent. But for tenants prepared to relinquish their leases, the process can slow an eviction and allow them to get out of paying built-up rent debt. And this feature is expected to grab more tenants’ attention as the federal government’s eviction moratorium is set to expire June 30.

Nearly 7 million ...