July Bankruptcies Up Year on Year, Led by 24 Percent Sub V Bump

Bankruptcy attorney Tyler Layne was quoted in a Law360 article about the increase in bankruptcy filings in July, including a 24 percent year-over-year rise in Subchapter V filings. The article discussed how elevated interest rates, inflation and high household debt contributed to financial distress among small and midsize businesses, even as traditional Chapter 11 filings at larger enterprises declined. Tyler, who co-leads the firm's Bankruptcy, Restructuring and Creditors' Rights Practice Group, also noted that many companies are pursuing out-of-court restructurings, which can provide a more cost-effective and efficient alternative to bankruptcy. He concluded these trends will likely continue given those macroeconomic factors.

"I think generally, the increase in Subchapter V cases is representative of broad-based distress in small businesses and midsize businesses," he said.

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