Bankruptcy Filings are on the Increase

Bankruptcy Filings are on the Increase

A recent article in Yahoo Finance noted that bankruptcy filings are on the increase (https://finance.yahoo.com/news/2019-is-the-first-time-in-in-8-years-that-bankruptcy-filings-are-projected-to-rise-abi-221249707.html ; producer is Yvette Killian).

The article states that according to the American Bankruptcy Institute, U.S. bankruptcy filings in July 2019 were up 3% from the same time a year ago. The article continued to state that “bankruptcy filings are on the rise as Americans pile up more debt. The latest ABI data pegs household debt near $14 trillion, which is $1 trillion more than the 2008 Great Recession peak.”

At Shenwick & Associates we have been extremely busy this summer with bankruptcy filings and workouts for both individuals and businesses, and we expect this trend to continue in 2019 and 2020 given the rise in debt usage.

In Jim Shenwick’s  opinion  in New York , we are seeing a “Tale of Two Cities”  in that a segment of the population is doing extremely well, but many sectors in the city are hurting and at risk.

Uber, Via and Lyft have hurt taxi medallion owners. Last month's taxi medallion sales were at approximately $130,000 per medallion, down from $1,300,000 three years ago. Politicians have not successfully addressed these issues to date.

Vanguard has hurt the hedge fund industry, with many funds closing.

Amazon is hurting retail and many retail stores in the city are closing, evidenced by the vacant storefronts we see on each block.

Restaurants have been hurt and continue to be hurt by the increase in the minimum wage to $15 per hour, which has squeezed the bottom line.   Many restaurants have closed or filed for bankruptcy as they are no longer profitable. Restaurant owners have also individually filed bankruptcy due to property lease guarantees they may have signed. 

Many young people are overburdened by student loans and have substantial credit card debt.

Bankruptcy or out of court workouts may be a solution for some of the above-mentioned problems faced by individuals and businesses, and Jim Shenwick 212-541-6224 jshenwick@gmail.com  can assist with those issues. 

James Shenwick
Shenwick & Associates

122 East 42nd St. (42^nd & Lex. Ave SW Corner)
Ste 620
New York, N.Y. 10168

Bankruptcy & Creditor’s Rights

“We always appreciate referrals”
(W) 212-541-6224 ext. 113
Cell Phone: 917-363-3391
Fax 646-218-4600 
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