Puerto Rico bankruptcy filings up 26% YOY in December

Written by  //  January 7, 2014  //  General Biz News  //  No comments

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The statistics compare unfavorably with December 2012, when there were 825 cases filed, representing a 10.2 percent drop in comparison to the same month in 2011.

The statistics compare unfavorably with December 2012, when there were 825 cases filed, representing a 10.2 percent drop in comparison to the same month in 2011.

Bankruptcy filings were up 26 percent year-over-year in December, when a total of 1,044 cases were filed, according to preliminary figures released Monday by research firm Boletín de Puerto Rico.

The statistics compare unfavorably with December 2012, when there were 825 cases filed, representing a 10.2 percent drop in comparison to the same month in 2011.

The latest data shows that so far this year, people and corporations seeking protection from creditors have filed 11,032 cases in U.S. Bankruptcy Court. The cumulative total represents a 6 percent year-over-year increase, the report shows.

When broken down by categories, the December results conclude that three of the four types of filings showed increases, with only one category holding steady.

Chapter 7 filings, or those filed by individuals or corporations seeking total liquidation of assets, were up 37 percent in December, with 381 cases filed. So far this year, a total of 3,933 filings have been submitted in court, representing an 8 percent cumulative year-over-year difference.

Chapter 13 cases, or those that allow individuals to undergo a financial reorganization supervised by a federal bankruptcy court, were up 22 percent in November, when 644 cases were filed. A total of 6,870 people sought the court’s protection through December, representing a 6 percent year-over-year difference.

Meanwhile, Chapter 11 filings — a type of legal protection available to businesses and individuals looking to reorganize their finances and start over — totaled 17 for the month, up 6 percent when compared to the same month in 2012. So far this year, 206 cases have been filed.

Finally, Chapter 12 filings, or those reserved exclusively for farmers and agricultural operations, held steady at two last month. However, cumulatively, those types of cases were down 34 percent.

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