Two companies file for bankruptcy in July
Mid-summer figures redirect previously upward trend
There is good news on the bankruptcy front in July, except for those that declared it. Personal bankruptcies were down to near record lows, particularly those with business related debt.
Some 128 households and business filed in total in July, 20 fewer than last month and 35 fewer than July of last year. It is the lowest number of filings for any July, even including 2006, the year a law passed that made it tougher to file. And it’s just three more filings than in January 2016, the lowest of any month since 1989, unless you include 2006.
The news is somewhat of a relief because January’s low was sandwiched between December and February’s low of 127 each and a sharp increase in March and April (May and June’s matched last year’s figures). The result was less than a percentage point fewer bankruptcies from last year, year-to-date, compared to five straight years of annual double digit declines, with the last three of those years experiencing a 20 percent drop each. Now, with July’s numbers, there is a decline compared to last year, albeit just under 4 percent thus far.
In addition, there were only four bankruptcies due to business related debt, compared to an average of 20 for the last three months. Only two of those filings were by the businesses themselves. The other two were from individuals who lost money because of their businesses or business holdings.
The July businesses files are.
- Portsmouth Builders, LLC, Portsmouth 7/13, Chapter 7. Assets and liabilities: $100,000 to $500,000.
- Kleen Laundry & Drycleaning Services, Inc., Lebanon, 7/26, Chapter 11. Assets and Liabilities: $1 million to $10 million.