During the month of April, a total of 755 individuals, companies and businesses filed for Bankruptcy law declining a -23% in comparison with the last fiscal year. Making the yearly sum overall, thus far, 3094 at a 12% in comparison with the last fiscal year and 423 fewer bankruptcy files than this time last year. This last month a total of 12 companies filed for bankruptcy under a Chapter 11 bankruptcy filing, averaging a significant decrease of -54% in comparison to April in 2016.
Under a Chapter 11 bankruptcy filing, the debtor reaches an agreement with creditors to modify the terms of the loan without having to liquidate or sell off assets. Moreover, the reported total of companies that filed for bankruptcy under Chapter 7 on April was 325. Under Chapter 7, which is usually the division with the biggest number of bankrupts filed and April 2017 was no exception, no agreement is reached and there is the need to liquidate. One of the companies to file for Chapter 7 bankruptcy was the Fiddler, González & Rodríguez Law firm, who currently employs over 60 people, with a total debt of $4.3 million. Since it was filed under Chapter 7, the creditors with insurance like Oriental Bank, who is its biggest creditor with a sum of $935,569, will not be affected by the ratification of bankruptcy.