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Puerto Rico bankruptcies up 18.6% in June with 426 filings

So far this year, a total of 171 businesses have turned to the U.S. Bankruptcy Court for protection.

Puerto Rico’s bankruptcy levels showed a significant uptick in June, with 426 cases filed at the U.S. Bankruptcy Court, representing an 18.6% year-over-year increase compared to the 359 cases filed in the same month last year, according to the latest report released by research firm Boletín de Puerto Rico.

So far this year, there are 2,777 bankruptcy cases filed, marking a 35.4% increase from the same six-month period in 2023. Combined, the petitioners reported a total of $359 million in secured, unsecured and priority debt, which is up 35.5% compared to the $265 million related to filings from January to June 2023.

When broken down, Chapter 13, or personal bankruptcies, topped the list with 1,837 cases submitted to the court so far this year. The figure represents a 33.5% increase in individuals seeking the court’s protection against creditors compared to the same period in 2023, the report shows.

A total of 902 cases have been filed so far this year under Chapter 7, which implies a total liquidation of assets. The total represents a 39.4% year-over-year spike in filings.

Meanwhile, a total of 29 Chapter 11 petitions have been filed so far in 2024, representing an 11.5% jump compared to the same six-month period in 2023. Chapter 11 cases allow the debtor to work through their financial situation while still managing their business.

Rounding out the list are Chapter 12 filings, which soared by 350% in the first six months of the year, with nine cases filed. This remedy is available only to farmers.

According to Boletín de Puerto Rico’s research, the 10 businesses or professions with the most bankruptcy filings during the first half of 2024 are restaurants (12 filings), construction companies (9), doctors (8), agricultural (7), fast food (5), mini market (5), beauty salon (4), real estate (4), bakeries (3), and consultants (3).

The breakdown also shows that agricultural businesses that filed for bankruptcy protection had a combined debt of about $7.6 million, followed by doctors, with $6.6 million and restaurants with $6.3 million.

So far this year, a total of 171 businesses have turned to the U.S. Bankruptcy Court for protection, representing a 24.8% increase from the 137 cases on file for the same period in 2023.

Author Details
Author Details
Business reporter with 30 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 segments of Puerto Rico’s economy.


  1. David Gonzalez July 9, 2024

    Cost of living has risen people are spending less. Business owners are forming many cut back on man power.

  2. Tony July 10, 2024

    That’s due to the terrible job that the Biden administration and the other Demonrats in Congress!

    1. Sanchez July 11, 2024



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