September bankruptcy filings in Puerto Rico up 21.3% YOY
Chapter 7 filings saw a significant rise, while Chapter 11 cases declined.
Puerto Rico’s bankruptcy court saw significant activity in September, with 489 cases filed, marking a 21.3% year-over-year increase, according to data compiled by research firm Boletín de Puerto Rico.
So far this year, 4,199 petitions have been filed seeking the U.S. Bankruptcy Court’s protection, a 32.3% jump compared to the same nine-month period in 2024.
The report showed increased activity in two of the four categories, with a marked rise in Chapter 7 cases, with 178 on record for September, reflecting a 61.8% increase from the same month in 2023. Chapter 7 provides for a total liquidation of assets.
When broken down, most cases in September, totaling 306, were filed under Chapter 13, which allows individuals to reorganize their finances. This represents a 6.9% increase year-over-year.
Chapter 11 filings, which enable businesses to reorganize their finances while continuing to operate, dropped 16.6% from the prior year, with only five cases filed in September.
No farming operations applied for Chapter 12 protection in September, a category that is reserved exclusively for troubled agriculture businesses.
These are preliminary numbers for last month at the U.S. Bankruptcy Court, Boletín de Puerto Rico noted.
