Business Bankruptcies Soar in August as Rising Interest Rates Bite
- By one measure, restructuring filings climbed 54% for August
- Insolvency cases have climbed steadily for 13 months
The number of commercial bankruptcies increased nearly 17% in August.
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Business failures spiked in August as the number of companies seeking court protection from their creditors jumped in response to rising interest rates and pockets of economic headwinds.
The number of commercial bankruptcies increased nearly 17% in August compared to July, according to data company Epiq Bankruptcy. That marks the 13th consecutive month that total bankruptcies, including families and individuals, have logged year-over-year increases, according to the American Bankruptcy Institute.