Puerto Rico sees 28.8% Y-O-Y surge in bankruptcies in 2024
The real estate sector reported the highest debt, while Guaynabo saw the largest increase in commercial filings.
Puerto Rico saw a notable rise in bankruptcy filings in 2024, with 5,712 cases reported — a 28.8% increase from 4,435 cases in 2023 — according to research firm Boletín de Puerto Rico.
There were 1,845 Chapter 7 cases, or “liquidation bankruptcies,” filed in 2024, a 35.5% jump from 2023. These cases involve selling a debtor’s non-exempt assets to repay creditors.
Chapter 13 cases, known as “wage earner’s bankruptcy” — which allow individuals with regular income to create a repayment plan for debts — reached 3,798 in 2024, up 26.5% from the prior year.
Chapter 11 filings, typically used by businesses to reorganize while continuing operations, dropped to 56 cases, marking a 15.2% year-over-year decrease.
Finally, Chapter 12 cases — designed for family farmers and fisherfolk — saw the largest percentage increase, with 13 cases filed, a 225% year-over-year jump.
Several sectors bore the brunt of financial struggles in Puerto Rico in 2024. The real estate sector reported the highest debt, with $75.8 million across eight filings. Restaurants filed 22 cases, accumulating $9.6 million in debt. Meanwhile, the agriculture sector filed nine cases, reporting debts of $8.1 million.
Other notable sectors included construction, with 13 cases amounting to $7.6 million in debt, and fast-food establishments, which filed 10 cases totaling $1.8 million in liabilities.
Commercial bankruptcies and regional trends
The commercial sector filed 337 cases in 2024, marking a 21.2% increase from the previous year. Among municipalities, San Juan led with 40 commercial filings, though this reflected a 7% decrease from 2023. In comparison, Guaynabo recorded a 275% increase, rising to 15 cases, while Carolina doubled its filings to 22.
Other cities with significant increases in overall filings included Arecibo (up 48%), Guaynabo (up 50%), and Vega Baja (up 41%).
Several high-profile bankruptcies dominated headlines in 2024. Full House Development Inc. in the real estate sector, reported the largest debt of the year at $44.5 million, followed closely by Convention Center Parking Inc., with $44.2 million in liabilities. Other notable cases included Latin Media House LLC, which reported $8.7 million in debt, and Echo Green Recycle Corp., with $7.9 million.
Despite the surge in filings, total reported debt for 2024 amounted to $841.8 million, reflecting an 18.96% drop from the previous year. However, this figure was heavily influenced by the 2023 bankruptcy of HIMA Hospitals, which alone accounted for $472.3 million.
When adjusted to exclude HIMA Hospitals, the total debt reported in 2024 showed a 52.16% increase compared to the adjusted 2023 figure of $553.2 million.
