Total bankruptcies have continued the sharp decline that has existed since the beginning of the Covid pandemic.
There was a twist in 2022, however.
Chapter 7 continued its sharp drop.
Chapter 12 continued its sharp drop.
Chapter 11 increased extremely slightly.
Chapter 13 increased sharply, completely revering the ground lost in 2021.
Chapter 13 is individual reorganization, conducted over a 3 to 5 year period. If the individual is unable to successfully fulfil the terms, Chapter 13 can, on the request of creditors, be converted to Chapter 7, which is individual liquidation.
This is most likely the natural result of the various Covid emergency subsidies and programs ending, combined with the effects of inflation.
I suspect, as time goes on, a good portion of those Chapter 13 bankruptcies will end up going into Chapter 7.
On the whole, however, total business and non-business bankruptcy filings remain down.
Bankruptcy can be filed “in forma pauperis” which waives the filing fee requirements for destitute people. And there are usually non profits available that will file a simple Chapter 7 on a pro bono basis.
It’s called Elliot waves. and they get larger before they get smaller.
(1–3—5—8 if you subscribe to the theory)
Home equity doesn’t look all that stable
Car repossessions are at a decade high and climbing at perhaps the fastest paces on record
Retail & day traders now comprise almost 23% of stock market volume
– (That is higher than at the top of the meme-stock frenzy and rivals the tulip bubble)
It’s not very difficult to find news that contradicts this.
I have no reason to think your source is biased or whatever.
I guess it depends on one’s counting method.
Hmm what I am about to post could be a standard variation in sample size but . . .
20 large U.S. companies with at least $50 million in liabilities have filed for bankruptcy in January.
There won’t be any official data from the United States Courts for 2023, until the first quarter reports (January, February, March) come out towards the end of April or the beginning of May.
Quite a while yet before we will have any useful official information for 2023.
Apparently euro bankruptcies are rising a a substantial clip.
Two probable factors
Russia sanctions affect Europe more than the US
Euro companies including pension funds tend to invest in gov’t bonds (instead of stocks) AND THEN USE THOSE BONDS AS COLLATERAL
Euro environmental policies are drop-kicking anything ag related: wine, cheese, flowers, grains, cooking oil, everything. Farmers, farm suppliers, farm lenders, farm ing villages are all in big trouble over there.
Propping that up as anywhere near enough is about as pathetic as the number itself. Stop butting in on me with these below average IQ bootlickings. I’m not here to (D)umb myself down for the sidelines.
Yes.
As soon as everyone had to stay home,
and got free money via PPP
a lot of people formed a (ahem, cough cough) “business.”
(I even encountered anecdotes of bots that just start up small businesses and applied for free PPP money.)
Questions are
How many of those are real?
How many of the real untried untested start-up businesses will survive when neither they nor their customers are getting free money?
How many start-up businesses NOW (and in the foreseeable future) are at a disadvantage because their field is crowded with free money competitors?
