Puerto Rico’s bankruptcy levels showed an 8.26% year-over-year drop last month, when the total number of companies and individuals who turned to the U.S. Bankruptcy Court for help totaled 589 cases, according to data released by research firm Boletín de Puerto Rico.
The current number compares to the 642 petitions filed at the local court in July 2018.
So far this year, there have been 4,394 bankruptcy cases filed, representing a 0.3% drop from the same seven-month period last year.
When broken down, the data shows that there were 11.6.% fewer Chapter 7 filings from January to July 2019 from petitioners seeking a total liquidation of assets. There were 1,717 cases filed during the period.
Chapter 13, or personal bankruptcies, also showed growth in the seven-month period, when 2,615 cases were filed, representing a 9.3% increase in comparison to the number of individuals have sought the court’s protection against creditors in the same period in 2018.
Meanwhile, Chapter 11 cases showed a significant 21.7% year-over-year drop for the period — when a total of 54 cases were filed. Chapter 11 cases allow the debtor to work through their financial situation while still managing their business.
The last category, Chapter 12, remained showed a 116.7% growth during the January-July 2019 period, with 8 cases filed so far, Boletín de Puerto Rico’s data shows. The Chapter 12 classification is open only to farmers.