June 6, 2016
Financial distress within a number of sectors, including energy and retail, has caused more businesses to file for bankruptcy.
- Business Chapter 11 filings climbed 67%: 408 April 2015 climbed to 680 in April 2016
- Consumer bankruptcy filings decrease –11%: 75,308 April 2015 down to 66,975 April 2016.
Just a brief description of Chapter 11 bankruptcies:
Chapter 11 Bankruptcies are generally used when individuals or companies have large amounts of debt that they need to reorganize. Typically, an individual will file a Chapter 11 only if they do not qualify for a Chapter 13 bankruptcy.
Chapter 13 bankruptcies have debt limitations whereas Chapter 11 bankruptcies do not.