After years of declining bankruptcy filings, according to the most recent study by Epiq Bankruptcy, filings in January 2023 show a significant increase across all chapters from the same month in 2022.
Chapter 11 filings jumped 70%, with cases under the Small Business Reorganization Act going up by 49%. Individual cases also showed a marked growth, with Chapter 13 cases increasing by 32% and Chapter 7 cases by 9.4%.
These increases reflect the recent trend of increasing filings as the economy continues to emerge from the post-pandemic period. "Individuals and businesses tend to file for bankruptcy reorganization when they want to protect assets that they are in danger of losing," Brett Weiss, principal of The Weiss Law Group, said. "As the economy continues to improve, more filings are likely to occur."
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