![](http://redraiderrvparklubbock.com/wp-content/uploads/2019/06/bankrupt-2922154_1280.jpg)
Business Bankruptcies Jump 34 Percent in First Half of 2024
Bankruptcy filings by commercial entities grew by more than a third this year as businesses struggled under an environment of high costs and interest rates, according to the American Bankruptcy Institute (ABI).
A total of 3,016 commercial Chapter 11 bankruptcies were filed in January–June this year, up 34 percent from last year, according to a July 3 ABI press release. Small-business filings rose by 61 percent. Total bankruptcy filings rose by 15 percent, with individual filings increasing by 15 percent.
“The continued increase in bankruptcy filings reflects the growing economic strain on businesses and households,” said ABI Executive Director Amy Quackenboss.
Michael Hunter, vice president of bankruptcy data provider Epiq AACER, said he expects an increase in individual filings ahead, “especially considering the large increase in commercial filings, consumer debt levels, high interest rates, and overall increased costs with relatively flat household income.”
Businesses have been battered in an environment of high inflation and interest rates. The 12-month inflation rate has been hovering above 3 percent since June last year, although some analysts calculate it may be much higher. Meanwhile, the Federal Reserve has kept interest rates at 5.25–5.5 percent since July last year. This combination of higher expenses is putting pressure on businesses.
Despite such an environment, many executives remain positive about the future. A recent survey by professional services network Grant Thornton found that 58 percent of chief financial officers (CFOs) are optimistic about the U.S. economy, the highest in almost three years.
About Post Author
Patrick Robinson
More Stories
How to Deal with Real Estate Trust Accounts
Managing real estate trust accounts can be a complex and sensitive task, requiring adherence to specific regulations and best practices...
Zenovia Harris Selected For U.S. Chamber Foundation Education And Workforce Fellowship Program
The U.S. Chamber of Commerce Foundation recently announced that Zenovia Harris, Chief Executive Officer of the Kent Chamber of Commerce,...
The U.S. Supreme Court grants Trump partial immunity for his actions in a controversial decision that marks a victory for the former president.
It really does suck that it can’t just come out, because I’m working on a really fun one right now. Even the all-powerful Pointing has no control about the blind texts it is an almost un orthographic life.
U.S. orders 2,612 Boeing planes to be checked over oxygen mask problems
Detergent companies and laundromats will not be pleased. A number of clothing manufacturers who are looking to change the apparel industry by offering clothing that encourages fewer washings.
NATO arrives at the Washington summit refreshed and with its eyes set on Biden’s options and the future of the US
You can never take too much care over the choice of your shoes. Too many women think that they are unimportant, but the real proof of an elegant woman is what is on her feet.
Tropical Storm Beryl leaves 4 dead in Texas and causes a massive blackout
While there are plenty of beautiful beaches to choose from in America, why not go a bit far out and spend some (virtual) time at some lesser-known spots around the world?