Pittsburgh Area Bankruptcies Drop in Second Quarter

According to the Administrative Office of the U.S. Courts, Pittsburgh has experienced a decrease in the number of bankruptcy filings by local businesses this year.

The Pittsburgh Business Times reports that data from the Administrative Office of the U.S. Courts showed a significant drop in bankruptcy filings by Pittsburgh-area businesses — only 55 were recorded in the Western District of Pennsylvania — during the second quarter of 2014. This number is down from last year’s by 10. The first quarter saw 62 filings, but the amount for the first half of the year is still 20 percent below last year, which saw 146 filings during the first six months.

Of this year’s second quarter bankruptcy filings, 23 of them were under liquidation and 21 were under restructuring. An additional eight filed under Chapter 13, which focuses on sole practitioners, while the final three filed under Chapter 12, which adjusts debts incurred for farming.

The fact that no particularly sector or industry seemed to be hit harder than any other suggests that the regional economy is fairly stable. In fact, more businesses appear to be able to opt for workouts, a process in which the lender and lendee devise a payment plan together instead of filing for bankruptcy, than before.

This is good news for small businesses, which are hit hardest in a poor economy. When a small business finds itself overwhelmed with debt, bankruptcy is often the plan to turn to. If a workout isn’t an option, bankruptcy may still be able to help, but the effectiveness of its relief depends on several factors:

• The types and amounts of the debts you have
• Whether you will be held personally liable for debts incurred by your business
• Whether you plan to keep your business running or close it down
• Whether your business is a sole proprietorship, general partnership, limited liability company or corporation

To find out whether bankruptcy would be a helpful option for your business, contact a skilled attorney in Pennsylvania. 

Contact us at Harold Shepley & Associates at 1-866-284-7062 or visit us at shepleylaw.com. 

By Harold Shepley | Published October 6, 2014 | Posted in Bankruptcy, Chapter 13, Debt | Tagged bankruptcy filings in Pittsburgh, business bankruptcy, chapter 13 | Leave a comment