New York residents may be interested to hear that the total number of bankruptcy filings in May have decreased by 12 percent from last year. Commercial Chapter 11filings decreased by 25 percent, from 716 filings in May 2012 to 537 filings in May 2013.
Total filings have also decreased four percent from April 2013, totaling 96,430 filings versus 100,732 from the previous month. Chapter 11 filings decreased from 704 filings in April 2013 to 537 filings in May 2013, a decline of eight percent.
The average total bankruptcy filing dates have also declined from 3,534 filings in May 2012 to 3,111 filings in May 2013, a 12 percent decrease. New York is not listed among the top five states with the highest per capita bankruptcy filing rates.
The Executive Director of ABI, a company that helps to provide up-to-date bankruptcy filing data, believes that the numbers will only continue to decline. Lower interest rates, decreased consumer spending and tighter lending standards have allowed both consumers and businesses to keep their finances in check.
Many small business owners may be facing pressures from increasing debt. They have the option to file Chapter 11 bankruptcy, which protects them from creditors. An experienced New York attorney may be able to help their client find debt relief by debt reorganization and payment plans. The attorney may be able to represent small business owners using his extensive knowledge of the U.S. Bankruptcy Code to negotiate with creditors. They may be able to get the business owner back on his feet and successfully operating while obtaining the time needed to repay any loans.
Source: ABI, “May Bankruptcy Filings Decrease 12 Percent from Previous Year, Business Filings Decrease 25 Percent“, June 05, 2013by