P.R. bankruptcies remain flat in June, up 5% so far in ’16

Written by  //  July 5, 2016  //  Economy  //  No comments

Bankruptcy cases remained flat year-over-year in June. (Credit: © Mauricio Pascual)

Bankruptcy cases remained flat year-over-year in June. (Credit: © Mauricio Pascual)

Puerto Rico’s bankruptcy levels remained flat last month, when the total number of companies and individuals who turned to the U.S. Bankruptcy Court for help was up by two cases when compared to the same month in 2015.

So far this year, there are 5,291 bankruptcy cases on file, representing a 5.06 percent increase from the same six-month period last year.

When broken down, Chapter 12 filings soared by 300 percent in June, when four cases were filed. This remedy, open only to farmers, has been used 14 times so far this year, data collected by local analyst firm Boletín de Puerto Rico shows. This category outpaced all four bankruptcy classes last month.

Chapter 11 cases came in second last month when 23 cases were filed, up 91.6 percent year-over-year. A total of 154 petitions have been filed so far in 2016, representing a 7.7 percent jump when compared to the same six-month period in 2015. Chapter 11 cases allow the debtor to work through their financial situation while still managing their business.

Meanwhile, Chapter 13, or personal bankruptcies, showed a slight drop, with 483 cases filed in June. That represents a 1.63 percent drop, with eight fewer cases on record last month when compared to the same month last year. So far this year, some 2,941 individuals have sought the court’s protection against creditors, also reflecting a slight drop.

Finally, as per the data gathered by local research firm Boletín de Puerto Rico, 366 cases were filed in June under the Chapter 7 category, which implies a total liquidation of assets. The total for the year is 2,182 cases, or four fewer petitions than last year’s six-month total.

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