Total bankruptcy filings in Puerto Rico in September 2021 were 318.Compared to August 2021, bankruptcy filings increased by 5%. When compared to September 2020, bankruptcy filings reduced by 28%. There is a year-to-date total of 2,967 bankruptcy filings. Compared to 2020, in 2021 there have been 31.16% fewer bankruptcy filings.
Chapter 7 is available to debtors with low income or below the corresponding “median income” or who succeed in passing what is known as a means test. Commonly the person has few or enough assets for basic needs (clothing, furniture, etc.). In September, Chapter 7 bankruptcy filings stood at 119. They decreased by 41% or 83 when compared to September 2020. The total accumulated chapter 7 bankruptcy filings from January to September are 1,217 or 30.3% less than in 2020.
Generally, Chapter 13 is available to debtors with unsecured debt of less than $ 360,475; and whose insured debts do not exceed $ 1,081,400. Final eligibility is determined on a case-by-case basis based on many factors and legal requirements. In September there were 196 Chapter 13 bankruptcy filings. These represent a reduction of 17% or 43 bankruptcy filings fewer than in September 2020. Year to date Chapter 13 bankruptcy filings stand at 1,700, 21% fewer than in the same period for 2020.
Chapter 11 of the Federal Bankruptcy Code is primarily for businesses (small and large) such as Corporations and Partnerships. It can also be used by individuals with high amounts of debt and assets who don’t qualify under Chapter 13 Bankruptcy. In September there were a total of 3 Chapter 11 bankruptcy filings, one more than in September 2020. The total year to date Chapter 11 bankruptcy filings is 30, 40% higher than in the same period in 2020.