Per Business Insider
Close to 3,000 firms reportedly filed for bankruptcy in the past six months ending in June, according to Epiq Bankruptcy. This was the highest number of filings ever since 2010.
This came as high-interest rates resulted in more American businesses deciding to file for bankruptcy. The number of bankruptcy filings was even higher than in 2020 when the COVID-19 pandemic started, and countries started to initiate major lockdowns, according to S&P Global Market Intelligence.
Greg Morin, the Epiq Bankruptcy VP of Business Development and Revenue, gave a statement regarding the situation.
"This trend points to the economic trials businesses are facing right now, which are impacted by rising interest rates, inflation, and increased borrowing costs, to name a few,"
Recently, it was reported that the number of US commercial Chapter 11 bankruptcy cases increased by 68% compared to the same point a year ago. In June alone, there were reportedly 217,000 bankruptcy cases filed, which was a 17% increase from the 185,000 cases that were filed during the same period in 2022.
In February, it was reported that the Supreme Court has ruled 9 to 0 that bankruptcy filers won't be able to avoid debt that was incurred by another's fraud.
See flow at unusualwhales.com/flow.
Other News:
- US commercial Chapter 11 bankruptcy cases was 68% more than the same point a year ago
- Supreme Court has ruled 9 to 0 that bankruptcy filers can’t avoid debt incurred by another’s fraud
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