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Area bankruptcy filings rise in May

After a fall in April, Rochester-area bankruptcy filings increased in May.

The 147 cases filed in the federal Bankruptcy Court’s Western District of New York’s Rochester division last month showed a 3.5 percent increase from the 142 cases filed in May 2015.

The May increase came after a nearly 13 percent decline in April, leaving filings for the year through last month a marginal 0.5 percent higher than they were at the same point in 2015.

In May, 110 area petitioners sought Chapter 7 discharges of debt, while 37 filed Chapter 13 cases. There were no Chapter 11 filings.

The Buffalo area saw a 15 percent decrease in bankruptcy filings in May compared to the same month last year. The Buffalo area is down 9 percent overall for the year.

Chapter 7 filers seek permission to sell assets to create a fund out of which to pay their creditors some or all of what they are owed. In so-called no-asset Chapter 7 cases, filers’ debts are discharged, while creditors remain unpaid.

Chapter 13 filers make plans to pay creditors all or part of what they are owed in up to 60 monthly installments.  

Chapter 11 petitioners also make plans to fully or partly pay debts. Such filers are usually businesses seeking court protection while they reorganize.

The courts’ nine-county Rochester division includes Monroe, Ontario, Wayne, Livingston, Seneca, Steuben, Yates, Schuyler and Chemung counties.

(c) 2016 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email rbj@rbj.net.


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