Rising Bankruptcy Filings Reshaping the Landscape for Creditors

Bankruptcy serves an essential purpose by providing relief to individuals and businesses facing genuine financial hardship. But when filings rise sharply—as they have over the last two years—the impact on lenders, merchants, contractors, and local businesses grows. Increased bankruptcy activity can weaken creditors, delay payments, restrict credit access, and slow economic growth across entire regions, including the Hudson Valley.

Bankruptcy Filings Are Climbing Nationwide

Recent data highlights the scale of the increase:

· In the 12 months ending September 2025, U.S. bankruptcy filings reached 557,376, a 10.6% increase year-over-year.

· Business filings rose 5.6%, with 24,039 companies seeking protection.

· Corporate bankruptcies climbed to their highest levels since 2010.

· Consumer filings (Chapter 7 and Chapter 13) continue to grow amid rising interest rates, household debt, and inflationary pressure.

For New York and the Hudson Valley, these national trends translate to more defaults, delayed payments, and increased risk for lenders, developers, contractors, and merchants.

The Impact on the Hudson Valley & New York Businesses

When bankruptcy filings surge, creditors face a range of financial pressures:

· Interrupted cash flow: Automatic stays halt collections immediately.

· Increased operational risk: Projects stall, leases may be rejected, and payments become uncertain.

· Reduced recoverability: Unsecured creditors often lose the most when filings increase.

· Tighter credit availability: When lenders absorb losses, borrowing becomes more restrictive across the region.

This environment makes strong creditor protections essential—not only for individual businesses but for the financial stability of the entire Hudson Valley.

How Handel & Carlini, LLP Protects Creditors

Handel & Carlini, LLP is dedicated to protecting the financial interests of creditors throughout the Hudson Valley and New York region. The firm represents banks, credit unions, trade creditors, developers, contractors, and merchants—working to ensure they recover what they are owed and maintain financial stability.

Their creditor-focused practice includes:

· Automatic stay litigation

· Cash collateral protection

· Executory contract & lease disputes

· Preference and fraudulent conveyance actions

· Plan structure and confirmation

· Collections, workouts, and restructuring

This comprehensive support ensures that creditors receive the protection they need in a system that can often favor debtors.

Why Strong Creditor Protections Matter

Safeguarding creditor rights is essential not just for individual lenders and businesses, but for the strength of the wider economy. When creditors are protected:

· Credit remains accessible to families and small businesses.

· Development and construction projects can move forward with confidence.

· Local employers are better positioned to maintain operations and long-term stability.

· The financial foundation of the Hudson Valley stays strong.

In periods of rising financial distress, proactive creditor protection helps limit economic disruption and strengthens the region’s overall resilience.

Supporting Financial Stability Across the Hudson Valley

With bankruptcy filings on the rise, creditors cannot afford to navigate the process alone. The legal strategies, documentation, and procedural steps required to protect creditor interests demand focused experience and timely action.

Handel & Carlini, LLP provides the advocacy, responsiveness, and deep bankruptcy experience needed to help regional lenders and businesses stay financially secure—even in challenging economic cycles.