Credit: kora_sun/Adobe Stock Even After an Interest Rate Cut, Fla. Lawyers Expect Bankruptcy Filings to Keep Rising
With inflation creating a cash crunch for businesses of all sizes, lawyers have seen filings increase in recent months. The problems are only expected to get worse as hurricanes continue barreling toward Florida and interest rate cuts have muted impact.
October 09, 2024 at 06:22 PM
4 minute read
What You Need to Know
- With inflation, natural disasters and election fears all adding pressure on businesses, local attorneys are expecting bankruptcy filings to rise.
- Filings have already been going up in recent months and the Fed's recent interest rate cut isn't expected to have an impact.
- Real estate, retail and hospitality have all fallen victim to rising costs, and price pressures are expected to continue getting worse.
Following the decision from the U.S. Federal Reserve to lower interest rates, lawyers are still seeing bankruptcy filings go up, with an expectation that the trend will continue.
Filings across all chapters were up 7% this June compared with June 2023 nationwide, according to the American Bankruptcy Institute. The surge in filings comes as a confluence of factors weigh down on many small and large businesses. Additionally, the interest rate cuts might take some time to have any effect on businesses, but they also might not even cause a big impact once they finally settle in, according to lawyers.
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