Pandemic Has Changed the Timing of
Commercial Bankruptcy Filings
Did you know the first quarter of the year has become the most active time for commercial bankruptcy filings?
While in years past, the second quarter was the most active period for commercial bankruptcies, that’s changed since the COVID-19 pandemic. According to the American Bankruptcy Institute, more than 6,300 businesses filed for bankruptcy during the first quarter of 2021. And the number of first-quarter filings was even higher in 2020.
First-Quarter
Commercial Bankruptcy Filings
| Year | Chapter 7 |
Chapter 11 |
Chapter 13 | Chapter 15 | Chapter 12 | Chapter 9 | TOTAL |
|---|---|---|---|---|---|---|---|
| 5,595 | 1,709 | 2,455 | 25 | 82 | 4 | 9,870 | |
| 3,852 | 1,285 | 1,031 | 97 | 39 | 3 | 6,307 |
Source: American Bankruptcy Institute
Don’t Be Caught Unawares!
If one of your commercial debtors should file for bankruptcy, would you know how to protect your interests?
Types of Commercial Bankruptcy
Filings
- Chapter 7 Liquidation for businesses
- Chapter 9 Reorganization for municipalities
- Chapter 11 Reorganization – for corporations, partnerships, or LLC’s
- Chapter 12 Reorganization – for family farmers and fishermen
- Chapter 13 Reorganization – for sole proprietorships
- Chapter 15 Cross-Border Insolvency – for foreign companies with U.S. debts
At CAB, our lawyers and bankruptcy specialists are highly experienced in representing creditors’ interests in bankruptcy proceedings. We know the ins and outs of the U.S. Bankruptcy Code, and we will boldly pursue recovery of all monies to which you are legally entitled.
CAB offers a full range of bankruptcy recovery services range: from filing proofs of claim, to negotiating critical vendor status with debtors, to serving on or chairing Creditors’ Committee meetings.
We even represent bankruptcy trustees in the liquidation of an estate’s receivables.
Taming the Bankruptcy Beast
All too often, creditors who receive a notice of bankruptcy just give up. They assume they have no rights or options with regard to their claim against the debtor.
But that’s not necessarily the case, particularly where commercial bankruptcy is concerned. If you receive a notice of bankruptcy filing from one of your business-debtors, don’t throw in the towel. You may have several options at your disposal.
But you’ll never know if you don’t call on CAB.
You don’t have to tame the Bankruptcy Beast on your own…Put the CAB team of recovery experts to work for you!
Sources:
Featured Image: Adobe, License Granted
American Bankruptcy Institute
