It has been yrs given that businesses submitted for Chapter eleven personal bankruptcy defense at the speed they are these days. In accordance to data from Epiq Devices, business Chapter eleven filings had been up forty eight% in Could in comparison with a single calendar year back, with a whole of 724 new petitions. The surge in filings comes as minimal surprise, as the COVID-19 pandemic is hitting a lot of sectors of the financial system, specifically retail and hospitality, hard.
Chapter eleven personal bankruptcy was a household phrase a 10 years back, as businesses sought refuge from the fallout of the money crisis. But it is creeping back into our collective consciousness. In spite of its ubiquity in the headlines, there are frequent misconceptions about what Chapter eleven implies and what the method entails. As a final result, some understand Chapter eleven as a fix-all for troubled organizations, even