P.R. bankruptcy cases down 18.3% through May vs. same 5-month period in ’20 – News is My Business

Puerto Rico’s Boletín research also confirmed that from January to May 2021, lawyers were most active in seeking bankruptcy protection, with a combined reported debt of over $ 2.8 million spread across five professionals. . (Credit: Cgracer | Dreamstime.com)

The U.S. Puerto Rico District Bankruptcy Court received 1,718 petitions from January to May, as filings were down 18.3% from the same five-month period in 2020, according to information provided by the local research company Boletín from Puerto Rico.

When broken down into categories, around 711 of these petitions fell under Chapter 7, whereby individuals, corporations, or self-sustaining businesses request full liquidation of assets. The number jumped 41.4% year-on-year in the first five months of this year.

Under this arrangement, the bankruptcy court appoints a trustee who oversees the liquidation of the assets, so that the debtor is released from his obligations.

Puerto Rico’s Boletín research also confirmed that from January to May 2021, lawyers were most active in seeking bankruptcy protection, with a combined reported debt of over $ 2.8 million spread across five professionals. . Bakeries followed, with $ 1.2 million in debt at three establishments, and three farmers applied to settle $ 1.1 million bonds. Seven restaurants filed for Chapter 7 protection with a combined debt of $ 923,070, and three hotels followed with $ 875,158 in accumulated debt.

So far in 2021, a total of 89 companies have filed for bankruptcy protection, which is a 7.2% year-over-year increase. San Juan, Bayamón, Caguas, Carolina and Hatillo were the five cities with the highest percentage of commercial bankruptcy filings.


Business journalist with 27 years of experience writing weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking, and most other segments of Puerto Rico’s economy.

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