Recent bankruptcy statistics show that bankruptcy filings are on the rise. Consumer requests increased by 34%, while business requests increased by 26%. The public will analyze inflation and rising interest rates and react accordingly. To avoid Chapter 11 bankruptcies, individuals and businesses must accept and respond to these changes in a timely manner.
Not only does this increase the chances of resolving financial problems without resorting to bankruptcy, but it also reduces the need for employee layoffs. Peter Antoszyk, co-director of the private credit restructuring group at Proskauer Rose LLP, describes bankruptcies in the U. S. Department of State in the last 12 to 18 months as “anemic”.
During this period of relative decline in bankruptcies, efforts have been made in the United States to correct certain alleged abuses of the Chapter 11 system. However, in March, the total number of new commercial and consumer bankruptcies filed increased by 33.5%, with a 34% increase in consumer applications and 26% in commercial cases. The retail sector is facing a possible wave of bankruptcies after a months-long slowdown in restructuring activity. To avoid Chapter 11 bankruptcies, individuals and businesses must take proactive steps to address their financial issues before they become unmanageable.
This includes creating a budget, reducing expenses, and seeking professional advice from financial advisors or attorneys who specialize in bankruptcy law.It is important to remember that bankruptcy is not always the best option for resolving financial problems. With careful planning and proactive steps, individuals and businesses can often avoid filing for bankruptcy altogether. By taking the time to understand their financial situation and taking steps to address it, individuals and businesses can often find solutions that do not involve filing for bankruptcy.