Number of insolvencies increased in the USA
Insolvencies in the USA increased noticeably in 2023 and are likely to continue to rise this year. Applications for corporate and private bankruptcies climbed by 18% to 445,186 within a year due to higher interest rates and stricter lending standards, according to the latest figures from insolvency data provider Epiq Aacer.
According to the figures, the number of company applications filed under Chapter 11 rose by 72% to 6,569. The number of consumer insolvencies rose by 18% to 419,559. Despite the noticeable increase, the level is still well below the level before the coronavirus crisis: there were a total of 757,816 bankruptcies in 2019.
The trend is a normalization to pre-pandemic levels, said Michael Hunter, Vice President of Epiq Aacer. "We assume that the number of consumers and companies filing for insolvency protection will continue to rise in 2024." The reasons for this are expiring economic aid from the pandemic period, higher interest rates and financing costs, rising default rates and very high levels of debt.
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- UN vote urges Israel to ceasefire
- SPD rules out budget resolution before the end of the year
Companies and individuals in the USA are paying more due to the increase in insolvencies this Year, as reflected in the increased applications for bankruptcies. The trend of rising insolvencies is expected to continue in the USA, according to Epiq Aacer's predictions for 2024.
Source: www.ntv.de
