The total number of bankruptcy filings in the United States, including in Massachusetts, increased five percent from last May to this May. The number of filings totaled more than 69,600 in May, with last May’s number being more than 66,100. Still, the number of Chapter 11 filings in particular for business bankruptcy protection actually dropped eight percent from last May to this May — from 613 filings to 563 filings.
Overall, many businesses and consumers who are facing growing financial pressures are relying on bankruptcy to give them that fresh financial start. The ABI Commission on Consumer Bankruptcy has begun to hold meetings designed to gather suggestions for possible improvements for the current consumer bankruptcy system. The next meeting, which will be open to the public, will take place in July. ABI released a report about recommendations related to Chapter 11 bankruptcy back in 2014 in an effort to update the bankruptcy code so that businesses would have a greater chance of reorganizing versus liquidating.
The number of commercial bankruptcy filings in May represents a seven percent hike from April of 2017, with the total being more than 3,300. In addition, the average number of filings per day last month was 3,167. This is a one percent increase compared with last May.
Business owners in Massachusetts who are struggling to make ends meet financially may quickly benefit from Chapter 11 bankruptcy protection. With this type of bankruptcy, business owners can reorganize their debts and pay them off over time. An attorney can help with filing for business bankruptcy and navigating the complex process from start to finish.
Source: abladvisor.com, “May Commercial Bankruptcy Filings Rise 5% Y/Y; Chapter 11 Filings Dip 8%“, June 6, 2017