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Record Bankruptcies Predicted in Next Year as Unemployment Soars

  • Personal filings could reach 1 million, Fed economist says
  • ‘The economy could deteriorate more than what we assume’
A worker for an independent contractor to  UPS makes deliveries on a street with closed stores in the Borough Park neighborhood in the Brooklyn borough of New York, U.S., on April 7.

A worker for an independent contractor to  UPS makes deliveries on a street with closed stores in the Borough Park neighborhood in the Brooklyn borough of New York, U.S., on April 7.

Photographer: Stephanie Keith/Bloomberg

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Bankruptcies related to Covid-19 shutdowns will set records in the next 12 months, according to Edward Altman, the professor emeritus at New York University’s Stern School of Business who developed a widely used method called the Z-score for predicting business failures.