Bankruptcy filings down 8% through November

Written by  //  December 18, 2012  //  Economy  //  No comments

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U.S. Bankruptcy Court in Old San Juan  (Credit: © Mauricio Pascual)

U.S. Bankruptcy Court in Old San Juan (Credit: © Mauricio Pascual)

As the year comes to a close, Puerto Rico’s bankruptcy filings appear to be keeping the downward trend that has prevailed throughout most of 2012. Filings through November were down 8 percent year-over-year, with 9,532 cases on record at the U.S. Bankruptcy Court.

According to the latest data released by research firm Boletín de Puerto Rico, filings on record just for November — 683 cases — represented a 15 percent drop in comparison to the same month in 2011.

Cumulatively through November, Puerto Rico residents had filed 5,965 Chapter 13 personal bankruptcy cases, a number that was 10 percent below the total filings in November 2011. Meanwhile, 3,358 companies and individuals sought full liquidation proceedings via the Chapter 7 filing option, down 5 percent from the prior year’s 11-month period.

Through November, there were 181 Chapter 11 filings, which allows petitioners to keep their businesses running while reorganizing their finances.

Finally, there were 33 Chapter 12 filings, representing farmers who turned to the court to address their financial problems. That number was down 13 percent when compared to November 2011.

The highest number of commercial filings came from construction companies, medical practices, dairy farms, auto mechanic shops, restaurants and cafeterias, Boletín de Puerto Rico noted.

In terms of the debt associated with the total number of filings so far this year, the breakdown is as follows: total debt, $2 billion, down 11 percent year-over-year; secured debt, $985.3 million, down 18 percent; unsecured debt, $994.6 million, down 4 percent; prioritized debt, $40.2 million, down 19 percent; and, unspecified debt, $14.1 million.

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