Category Archives: Bankruptcy – Business

The Sader Law Firm can help businesses file for Chapter 7 and 11 bankruptcy to restructure and erase debts.

Is summer the time to file bankruptcy?

By BRADLEY D. McCORMACK People love to see patterns in life. Whether it be politics, sports or weather, people want to see if they can spot a recurring theme in everything they see. It is no different in law, specifically in bankruptcy. We attorneys get reports almost every week or month reporting if case filings are up or down. People wonder if these patterns are attached to the stock market, the Fed rates, inflation, government stimulus or any number of other possibilities. One factor people like to examine is whether bankruptcy filing patterns can rise or fall determining what time of year it is. Most know the quote “For every time there is a season.” So, is summer the season of bankruptcy? In true lawyer fashion, the answer is yes and no. Consumer debt is cyclical. People tend to incur more debt in the holiday season than any other time…
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Sader Law Firm Managing Member Neil Sader provides insight on commercial bankruptcy uptick in interview with Kansas City Business Journal

The Kansas City Business Journal recently published an article on the factors leading to the uptick in commercial bankruptcy filings. Sader Law Firm Managing Member Neil Sader spoke to a reporter for the article titled “What you need to know as commercial Chapter 11 filings jump.” Sader noted the number of loans, specifically SBA loans, during and post-pandemic as one of the main causes. “As those business loans mature and come due, they can’t get refinanced for anywhere near what the old rates were,” Sader said in part. “So people are looking at whether they can extend their loan at the current rates. Bankruptcy can play a part in that.” Sader also advocated for preparedness for business leaders and taking a proactive approach to early signals of financial distress. “The biggest regret I hear from clients when it comes to bankruptcy is that they didn’t do it sooner,” Sader said….
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American Bankruptcy Institute: February Filings Up Double-Digit Percentages Year Over Year in All Major Categories

The American Bankruptcy Institute recently released a report showing new bankruptcy filings in February of this year were up in all major categories when compared to February 2022. This included an 18% uptick in total filings, with 31,889 made last month compared to just over 27,000 a year ago. Epiq Bankruptcy provided the data used. According to the ABI, “Total commercial filings also increased 18 percent, to 1,696 versus 1,442. Commercial chapter 11 filings increased 83 percent to 373 filings, up from 204. Subchapter V small business elections increased 45 percent to 120 versus the 83 filings registered the previous year.” Individual filings also went up by 18% for February 2023 compared to February 2022, although numbers still remain well below pre-pandemic levels. “The growing number of households and businesses filing for bankruptcy reflects the mounting economic challenges they now face,” said ABI Executive Director Amy Quackenboss. “Debt loads are…
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