Puerto Rico sees 21.2% Y-O-Y rise in bankruptcy filings in January
Chapter 7 and Chapter 13 filings drive the increase, while total reported bankruptcy-related debt surges to $68.5 million.
Puerto Rico experienced a significant uptick in bankruptcy filings at the start of 2025, with 452 cases reported in January — marking a 21.2% increase compared to the 373 cases filed in January 2024. The data, compiled in the latest Boletín de Puerto Rico report, sheds light on ongoing economic pressures, rising debt burdens and sector-specific financial struggles.
Most of the increase stemmed from Chapter 7 and Chapter 13 filings. Chapter 7 bankruptcies, which involve liquidation, surged by 29.7% to 144 cases, up from 111 the previous year. Chapter 13 filings, which allow individuals to restructure their debt, also climbed 20.2%, reaching 304 cases compared to 253 in January 2024.
However, Chapter 11 filings — typically used for business reorganization — declined by 50%, with only four cases reported versus eight last year. Additionally, there were no Chapter 12 filings, which apply to family farmers and fisher folk.
The pharmaceutical industry accounted for the highest bankruptcy-related debt, with Neolpharma Inc. leading the sector at $21.1 million, representing 73.83% of the total reported debt in January.
Other industries impacted included:
- Real estate: One bankruptcy with $1.53 million in debt (16.64% of total).
- Food services: One bankruptcy with $1.44 million in debt (11.63% of total).
- Landscaping: Two bankruptcies with $261,379 in total debt (2.11% of total).
- Beauty salons: Three bankruptcies totaling $182,728 (1.47% of total).
Overall, total reported bankruptcy-related debt in January 2025 reached $68.5 million, reflecting a 50.86% increase from the $45.4 million reported in January 2024.
Commercial bankruptcies and municipal trends
While overall bankruptcies surged, commercial bankruptcies showed a slight decline, with 25 cases in January 2025 compared to 26 the previous year (-3.8%). However, certain municipalities saw sharp increases in bankruptcy filings:
- San Sebastián: +400%
- Salinas: +167%
- Vega Baja: +150%
- Bayamón: +240%
- Cayey: +80%
The cities with the highest number of commercial bankruptcies were Ponce (four cases, +300%), San Juan (three cases, +50%) and Carolina (two cases, +100%).
