Bankruptcies are at crisis levels, the highest in 14 years.

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US bankruptcies have surged to the highest level since 2010, with 570 large bankruptcy filings year-to-date. This marks the highest number since the aftermath of the 2008 Financial Crisis. In the past three months alone, the filings have spiked, with 60 in October, 59 in September, and 63 in August.

The rise is attributed to a combination of high interest rates, ongoing supply chain disruptions, and weakening consumer spending. Major companies like Spirit Airlines and Northvolt have filed for bankruptcy as economic pressures continue to mount. This surge includes both personal and business bankruptcies, with notable increases in Chapter 7, Chapter 13, and Chapter 11 filings.

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Bankruptcies have spiked across various sectors, especially in consumer discretionary, healthcare, and industrials, as companies and individuals struggle to restructure or liquidate their debts under growing financial strain.

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Sources:

US Courts: www.uscourts.gov/news/2024/07/25/bankruptcy-filings-rise-162-percent

Bankruptcy Watch: www.bankruptcywatch.com/statistics

S&P Global Market Intelligence: www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-corporate-bankruptcies-in-june-reach-highest-monthly-level-since-early-2020-82297569


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