The state of New York has four federal bankruptcy courts located within its borders. Those courts represent the north, south, east and west of the state and serve corporate and individual debtors who are compelled to seek bankruptcy protections. Periodically the United States Bankruptcy Courts provide data on filings throughout New York and the rest of the country and this post looks at some recent data provided on business bankruptcy filings right here in the state.
During the 12-month period ending on September 30, 2014, the four New York bankruptcy courts received 1,605 new corporate bankruptcy filings. Those filings fell into four different bankruptcy categories: Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
Over the noted time period New York bankruptcy courts received 765 Chapter 7 filings and 690 Chapter 11 filings. There were considerably fewer Chapter 12 filings made, coming in at only 19. The final 104 business bankruptcy filings received by the courts were all based on Chapter 13 bankruptcy.
With more than 90 percent of all business bankruptcies made recently in the state based on the Chapters 7 and 11 bankruptcy processes, it appears that business debtors often find the protections offered by these two processes most applicable to their financial needs. However, business entities should realize that every bankruptcy is different and they should investigate the bankruptcy process that best serves their situation before making a bankruptcy filing.
Of the more than 1,600 businesses filing for bankruptcy in the last year it appears that some New York businesses are still struggling to keep their operations afloat. Bankruptcy can be a good option for those corporations prepared to meet the requirements of the bankruptcy laws. Individuals with questions about business bankruptcy options may choose to work with attorneys who work in the bankruptcy field.