November bankruptcies plunge 19%, YTD totals 9% below ‘10

Written by  //  December 2, 2011  //  Economy  //  1 Comment

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Cases filed at the U.S. Bankruptcy Court have dwindled consistently in the last eight months.

The number of bankruptcy petitions filed last month in Puerto Rico was 19 percent below the same month last year, Boletín de Puerto Rico revealed Friday. The preliminary numbers show that so far this year, the number of filings on record is 9 percent lower than those on record for the same 11-month period in 2010.

The numbers show that 801 cases were filed last month, the majority of which — or 507 — were personal bankruptcies. Still, that category saw a 19 percent reduction in comparison to November 2010.

Chapter 7 liquidations reached 207 last month, representing 72 fewer cases than those filed during the same year-ago month. However, Chapter 11 reorganization cases increased by 18 percent, at 13 filings, while Chapter 12, or those reserved for farmers, were up 100 percent, at six cases filed.

So far this year, some 10,347 petitions have been filed at the U.S. Bankruptcy Court in Puerto Rico, representing a 9 percent drop from the same period last year. Boletín de Puerto Rico’s data shows that as of last month, 1,038 fewer cases had been filed at the court.

The preliminary numbers do not show the debt associated with the bankruptcy petitions, which so far this year, has been on an upward trek.

One Comment on "November bankruptcies plunge 19%, YTD totals 9% below ‘10"

  1. RamonAntonio December 2, 2011 at 11:08 AM · Reply

    Well… when almost everyone has filled for bankruptcy, who else do we expect to file? Take a trip to most urban centers and commercial streets anywhere in PR. Those streets have a beginning and an end. and most of the businesses are closed. When the street finishes, why we expect more closed businesses if there is no street available?

    The sad truth is that the damage has already been done. A substantial amount of existing local businesses have closed and the local capital has vanished. There is a critical mass needed to survive. I think we already are living amidst that critical mass. We are indeed in survival mode.

    But we must not loose our hope!

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