As forecasted, bankruptcy filings experienced a rise this year, and according to legal experts based in South Florida, they expect this trend to carry on into 2024. These experts anticipate continued usage of alternative strategies for dealing with the situation.
Compared to the previous year, 2023 saw a marked increase in bankruptcy cases, as per Cornerstone Research’s data. Among those impacted were well-established businesses such as Silicon Valley Bank and Bed Bath & Beyond. The crypto industry in particular faced a significant number of these cases.
Furthermore, small businesses were also affected to a greater extent than usual, thanks largely to the introduction of Subchapter V filings, a new option that makes it simpler for these entities to reorganize.
In the currently evolving restructuring landscape, legal practitioners are getting increasingly innovative with their choice of options for achieving business restructuring. This observation was shared by Joe Pack, the founding partner of Pack Law. He noted that lawyers have become more resourceful than ever when it comes to business restructuring methods.
For more information on the uptick in bankruptcy filings this year, you may wish to view the original report here.