Bankruptcy is a legal term utilized to define the declared inability or impairment of ability of an individual or organisation to pay his (their) creditors. A voluntary state of bankruptcy can be requested or initiated by the bankrupt individual or legal entity. It can also be requested by creditors (involuntary) in an effort to recover at least a portion of what they are owed.
Bankruptcy cases in Puerto Rico are filed under the provisions of Title 11 of the U.S. Code. Cases are seen at the U.S. Bankruptcy Court for Puerto Rico, a part of the District Court System of the United States of America. Telephone (787) 977-6000.
New bankruptcy filings in Puerto Rico have averaged over 14,000 cases per year. The greatest number of filings in Puerto Rico is under the provisions of Chapter 13, which is available to individuals with unsecured debt of less than $307,675 and secured debt of less than $922,975.
The percentage of debtors filing for protection under bankruptcy laws is considerable lower than that of the Continental United States. This fact is attributed by some to the cultural background of Puerto Ricans who consider bankruptcy as a stigma on their reputation.
The author of this website, Carlos L Sánchez, is a Puerto Rican CPA, available for consulting work on a fee or hourly basis. For details,
or call me at (787) 292-6016.
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