Economy

P.R. bankruptcies up 8.14% in Aug., fueled by Ch. 7 cases

The U.S. Bankruptcy Court in Old San Juan was active last month. (Credit: © Mauricio Pascual) The U.S. Bankruptcy Court in Old San Juan was active last month. (Credit: © Mauricio Pascual)

The number of bankruptcy cases filed in Puerto Rico was up 8.14 percent year-over-year in August, when 929 cases were filed.

So far this year, 7,038 petitions have been filed at the U.S. Bankruptcy Court, representing a 4.25 percent jump when compared to the same period last year, information provided by research firm Boletín de Puerto Rico showed.

The data shows that Chapter 7 cases from petitioners seeking a total liquidation of assets were up 11.3 percent for the month of August, when 393 petitions were filed. So far this year, that category has also shown an increase, with 2,922 cases submitted at the court. That represents a 1.4 percent hike when compared to the same eight-month period in 2015.

Next up were Chapter 13 filings. or personal bankruptcies, which showed a 6.64 percent increase year-over-year in August, when 514 cases were submitted. Through August, a total of 3,911 petitions were presented, up 0.8 percent when compared to the same period last year.

Chapter 11 cases, which allow the debtor to work through their financial situation while still managing their business, remained flat last month, when 19 cases were filed. So far this year, 185 such petitions have been submitted to the court.

Finally, Chapter 12 cases, available only to farmers, were down 40 percent year-over-year in August, when 3 cases were filed. So far through August, that classification has been used 20 times, representing a 9.1 percent drop for the period, Boletín de Puerto Rico’s data shows.

Author Details
Business reporter with 25 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other areas of the economy.

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