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Landlord Tenant Law Litigation

Commercial Bankruptcy Filings On the Rise Due to Economic Turbulence

With the recent economic turbulence and pessimism, prudent lenders should be bracing themselves for the coming storm by adopting a five-point “CAPER” strategy: Communicate, Analyze, Preserve, Execute, and Resolve.

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Inflation has been running red hot in 2022. The Consumer Price Index (CPI) rose 0.4% in September on a seasonally-adjusted basis, which amounts to an 8.2% year-over-year increase since September 2021 before seasonal adjustment. See, https://bit.ly/3SkraQf (site last visited 10/17/22). The sharpest increases have been in the shelter, food, and medical care indexes. Id. The 4.9% decrease in the gasoline index provided welcome relief at the pump, but was not enough to offset the increases in the other indices. Id. At the same time, the Federal Reserve is doing its best to cool off the economy without pushing the country (and, the world) into recession — the mythical “soft landing.” In 2022, the Federal Reserve has already raised the federal funds rate five times for a total of 300 bps. See, https://nyfed.org/3EXm9dk (site last visited 10/17/22). The last three increases have been 75 bps each. Id. This comes after nearly two years of the Federal Funds Rate hovering around 0%. Id.

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