Chapter 7 Business Bankruptcy Filing on the Rise in First Half of 2009
More than 20,000 American businesses filed for Chapter 7 bankruptcy in the first half of 2009, according to a new study out.
Those filings represent an increase of 57 percent when compared with the same period one year ago.
The study, done by the American Bankruptcy Institute, also revealed that total business bankruptcy filings were up by 64 percent, with Chapter 13 filings seeing a staggering 113 percent increase.
These numbers do not include any self-employed contractors or business-owners who filed for personal bankruptcy this year.
It’s also important to keep in mind that a business filing bankruptcy does not necessarily mean the company is closing its doors. A Chapter 11 bankruptcy, of which is so popular this year, allows for a company to restructure itself to better handle its debt and business.
Major businesses filing for bankruptcy this year include:
- Major car makers Chrysler and General Motors
- Theme park Six Flags
- The makers of Wonder Bread
- Bally’s Total Fitness Center
- The parent company of the Philadelphia Inquirer and Philadelphia Daily News
- The Tribune Company, which owns The Chicago Cubs, tv station WGN and newspapers The Chicago Tribune and LA Times
- NHL franchise the Phoenix Coyotes
- Reader’s Digest
- Fashioned labels Fred Leighton and Christian Lacroix