Either the Pittsburgh region has dodged a bullet, thanks to government actions, or last year’s predictions of massive reorganizations and liquidations still loom. But even lawyers specializing in bankruptcies, creditor’s rights and workouts aren’t sure, the Pittsburgh Business Times reported. “We seem to be in this cycle where policymakers know a crash is coming unless they put another stimulus package out there,” said Kirk Burkley, managing partner of Bernstein-Burkley PC. “We used to say, ‘At some point, they have to stop doing that.’ I don’t know if that’s true any more. Maybe the new principle is you just keep doing it.” Business bankruptcy filings in the Pittsburgh region during the three months ended June 30 accounted for the second-lowest quarter in at least 18 years. The total of 46 was 50% above the comparable quarter in 2020, which still holds the record low point with 31 commercial filings. Robert O. Lampl, who leads a namesake firm specializing in bankruptcy work, said that due to the government’s role of providing funding such as the Paycheck Protection Program and protective measures to stave off evictions and foreclosures, it’s difficult to determine whether beneficiaries are recuperating or on life support. Of the 46 commercial filings recorded by the U.S. Bankruptcy Court for the Western District of Pennsylvania during the second quarter, 31 were chapter 7s, or liquidation; 11 were chapter 11s, or reorganization; and the remaining four were chapter 13s, which applies to sole practitioners, according to ABI. For the six months ended on June 30, 100 local businesses filed for bankruptcy, compared to 96 during the first half of 2020.
