Business bankruptcies keep climbing
Thursday, May 12, 2016
Kent Hoover, Washington Bureau Chief
Houston Business Journal
Commercial bankruptcy filings totaled 3,482 in April, up 32 percent from the same month a year ago.
This marks the sixth month in a row for year-over-year increases in business bankruptcy filings.
The data was compiled by Epiq Systems Inc. for the American Bankruptcy Institute, which also reports that 680 commercial Chapter 11 petitions were filed in April, up 67 percent from the same month a year ago.
These increases in business bankruptcies stand in contrast to consumer filings, which are down 11 percent from a year ago to 66,975 in April.
What’s going on?
“Distress within a number of sectors, including energy and retail, have more businesses turning to the financial relief of bankruptcy,” said ABI Executive Director Samuel Gerdano.
ABI contends bankruptcy laws need to be modified to encourage more businesses to seek reorganization under Chapter 11 instead of liquidation through other forms of bankruptcy.