By The Star Staff
Rep. José “Che” Pérez Cordero, who chairs the Legal Committee in the island House of Representatives, announced earlier this week that he will convene a meeting with members of the banking sector to evaluate possible measures to mitigate the dramatic increase in bankruptcy cases recorded in recent months.
“Certainly, over the past few months we have seen a dramatic increase in the number of cases submitted for bankruptcy proceedings, including many small and medium-sized businesses,” the at-large lawmaker said. “This past January, some 304 bankruptcy cases were filed, that is 20.2 percent more than in January 2024 and continues a pattern, since 2024 ended, with 5,712 filings, a record number not seen in Puerto Rico since 2019. The problem exists, now we must evaluate solutions.”
“We are concerned about all bankruptcies, but individual bankruptcies are too high,” Pérez added. “Given this reality, we are calling for a series of meetings starting with the island’s banking sector. It is important to know the input of the institutions that hold the debt of these citizens and businesses in order to evaluate alternatives that assist citizens at this time. That is the goal of this meeting, the search for short- and long-term solutions.”
The New Progressive Party legislator also indicated that he will be summoning, for subsequent meetings, groups that advocate for consumer rights, as well as the secretaries of the departments of Economic Development & Commerce and Consumer Affairs, Sebastián Negrón Reichard and Natalia Catoni, respectively.
According to available data, beauty salons were the businesses with the most bankruptcy filings in January, followed by gardening businesses.
Most bankruptcy cases in January were individuals filing for Chapter 7 liquidation, with about 144 filings, 29.7% higher than in January 2024.
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