US new bankruptcy filings hit 6,276 in Q2 2024, the highest level since Q2 2017.
The number of companies declaring bankruptcy has doubled in the last 2 years.
Chapter 7 filings, also known as liquidation bankruptcies, reached 3,151 in Q2, the most since the 2020 Pandemic.
Chapter 11 cases hit 2,462 last quarter, exceeding every other quarter over the last 10 years.
Chapter 13 and other bankruptcies rose to 469 and 194, respectively.
Bankruptcies have been rising at a pace seen during major economic downturns.
Source: https://x.com/KobeissiLetter/status/1825695530510598184
Bankruptcies don't do this in a good economy
byu/rwandb-2 ineconomy
by rwandb-2
22 comments
Hmmm, it’s almost as if interest rates have risen from a long period of historic lows.
Also credit card delinquencies are rising at the fastest rate since the 2008 crash
https://fred.stlouisfed.org/series/DRCCLACBS
Right. This is will be a terrible recession.
Those are medical bankruptcies
You’re thinking of bankruptcy like a person with student loan debt that is F’d for life. Private Equity gets rich off of bankruptcy. It’s in the business model. One of our presidential candidates “bankrupted” himself to becoming a billionaire. Obviously, not that hard when you start with $400M from your dad, but still. It’s a bad word for the 99.9% but very lucrative for the 0.1%.
Don’t panic. The pandemic stimulus, PPP loans that were forgiven, and low interest rates reduced bankruptcies for a while.
But wait, We candidate X wants to spend more money.
Looks like it’s just stabilizing
Are you serious? Have you ever seen a chart before? Have you followed the news?
This is a shitty tweet about nothing?
Sounds disinflationary, stocks go up
They absolutely do. You’re being thrown off by the chart itself. Look at it in terms of data going back to 2000.
Here’s California (page 5):
[https://abi-org.s3.amazonaws.com/Newsroom/State_Filing_Trends/2024/Filing_Trends_California.pdf](https://abi-org.s3.amazonaws.com/Newsroom/State_Filing_Trends/2024/Filing_Trends_California.pdf)
Here are the rest of the states:
[https://www.abi.org/newsroom/bankruptcy-statistics](https://www.abi.org/newsroom/bankruptcy-statistics)
Here’s another gov’t website that visualizes data going back to 2008, but the visualizer is buggy and dies easily:
[https://www.uscourts.gov/statistics-reports/analysis-reports/bankruptcy-filings-statistics/bankruptcy-statistics-data](https://www.uscourts.gov/statistics-reports/analysis-reports/bankruptcy-filings-statistics/bankruptcy-statistics-data)
Got a chart that goes back further by chance?
Being able to see the long term average would be nice.
As is it just looks like we are back to a normal amount after a dip created from low FED rate, PPP loans, and stimulus from the pandemic… So doesn’t seem concerning or note worthy really
It’s as if j. Powell said he wanted this to happen.
op needs to stop hanging around r/collapse
Something something bootstraps!
Making up for all the zombie companies that should have gone out of business during the ultra cheap interest rates. It is ultimately healthy.
Refers to a year (2017) as proof point for a signal of a bad economy when in fact 2017 was one of the best economies this country has ever seen
This IS a good economy thanks to President Biden. Stop being a doomer.
It’s all a part of the coming correction. The Fed will hold rates too high for too long to make for a soft landing. Expect more pain.
Well, how many of these companies were zombie companies that were being artificially kept a float when they should’ve failed a long time ago ago?
So, normal? Shouldn’t we be expect this to increase a bit more before settling back down to the mean line, to make up for the decrease of historic lows right before this?
No one can possibly believe Donald Trump and these Republicans are good for any economy.