Texas Leads Business Bankruptcies, Houston Court Rebounds Post-Scandal

In 2024, Texas emerged as the top state for business bankruptcies in the U. S. Surprisingly, Houston saw a dip in filings due to a scandal at the courthouse. The Southern District of Texas, known for its intricate bankruptcy cases, experienced a drop in filings after a judge stepped down. However, it bounced back strongly in the latter half of the year. Meanwhile, the Northern District of Texas saw a significant increase, making Dallas-Fort Worth a hotspot for business restructurings. The change in rules and the availability of skilled judges are believed to be the reasons behind the attractiveness of these Texas courts. Overall, Texas witnessed a 14% rise in bankruptcies compared to 2023, with various industries facing financial distress. While some experts anticipate a continued increase, others find the current surge not yet substantial.