Per Market Watch
There have reportedly been much more Chapter 11 bankruptcy cases in the US compared to just a year ago. In June, there were 217,000 bankruptcy cases filed, a 17% increase from the 185,000 cases filed in the same period in 2022 but for commercial Chapter 11 bankruptcy cases, there was reportedly a 68% increase.
It was noted that Chapter 11 lets businesses restructure their debts, just like how Chapter 13 worked for customers. National Association of Consumer Bankruptcy Attorneys president and bankruptcy lawyer Richard Nemeth gave a statement regarding the phenomenon.
Nemeth: “Bankruptcy filings have been at historic lows for the past few years due to the COVID foreclosure and eviction moratoriums and the availability of [Paycheck Protection Program], [Economic Injury Disaster] loans and other financial assistance from the government... Now that the COVID crisis has ended, we believe that it is highly likely that bankruptcy filing rates will rise significantly,”
In February, it was reported that the Supreme Court ruled 9 to 0 that bankruptcy filers can't avoid debt incurred by another's fraud. This was to answer the argument that some innocent people had to face debt from frauds they didn't commit.
In related news, in February, it was reported that FTX bankruptcy lawyers and advisors already billed around $20 million for 51 days of work.
See flow at unusualwhales.com/flow.
Other News:
- Supreme Court has ruled 9 to 0 that bankruptcy filers can’t avoid debt incurred by another’s fraud
- Lawyers and advisors in FTX bankruptcy have billed nearly $20 million for 51 days of work
Resources:
