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Este informe no está disponible en español. CARIBBEAN BUSINESS Bankruptcies Up 16% In JulyTotal debt and number of commercial bankruptcy filings rose 5.5% and 13.2% By JOSE L. CARMONA August 21, 2003 The number of individuals and businesses filing for bankruptcy in July 2003 was up 16% from last July, according to industry newsletter "Boletin de Puerto Rico." The total number of bankruptcies filed in July 2003 was 1,261, that’s 172 more than the 1,089 filed in July 2002 and 305 more than July 2001’s 956. Personal bankruptcies continued to account for the vast majority of filings, with 731 in July 2003. The remainder (530) were business bankruptcies, a 13.2% increase over July 2002. The businesses with the most bankruptcy filings in July 2003 included construction contractors (56 cases), coffee shops (27), trucking companies (22), bakery & pastry shops (20), and restaurants (18). Total bankruptcy debt in July 2003 stood at $815.8 million, a 5.5% increase over June 2002’s $773.2 million. Chapter 13, known as the wage-earner chapter, represented 69.4% of all bankruptcies reported during the first seven months of 2003, with 5,697 out of 8,209 filings. Chapter 13 allows debtors to seek a court-sanctioned payment schedule to satisfy creditors while retaining their homes and cars and protecting the credit and property of loan co-signers. Contrary to their stateside counterparts, most local debtors file Chapter 13 instead of Chapter 7. Chapter 7 is used primarily by individuals who wish to free themselves of debt, though it can also be used by businesses that wish to liquidate and terminate their operations. Year-to-date (January through July) bankruptcy filings under Chapter 7 (2,424 cases) were down 1.8% from the same period last year; Chapter 11 filings (81 cases) were up 12.5%. Chapter 11, also referred to as reorganization, is generally used by businesses, although an individual may also file under it. Puerto Rico Bankruptcies in July 1993-2003 Year: Number / % Change 1993: 540 / -18 1994: 507 / -6 1995: 534 / 5 1996: 862 / 61 1997: 1,245 / 44 1998: 1,472 / 18 1999: 1,367 / -7 2000: 1,153 / -16 2001: 956 / -17 2002: 1,089 / 14 2003: 1,261 / 16 Source: Boletin de Puerto Rico This Caribbean Business article appears courtesy of Casiano Communications.
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