Energy Businesses Responsible For Massive Uptick in Bankruptcies

Bankruptcy Attorney

Most common people are aware when oil prices fall dramatically because they see the price of gas at the pump drop substantially when they do. What many are not aware of is that when the price of oil drops the ramifications for the oil and gas industry can be catastrophic. You would be hard pressed to find many that have any sympathy for these companies as they seem to be the authors of our misfortune. When prices are very high and gas for your car and heating fuel skyrocket there seems to be little sympathy for the common man from these petro giants.

What most fail to realize though is that when these companies file for bankruptcy protection the person who gets hit the hardest is the small investor. The average Mom and Pop or pension fund investor gets the brunt of the damage and the big guys seem to be able to protect their assets. On the heels of the latest energy crisis, too much oil this time rather than too little which deflates the price and makes it very difficult for many companies to turn a profit. As a result, oil and gas companies have felt the brunt and we have seen a 46% uptick in bankruptcy filings in 2015 mainly by oil and gas companies. 8 of the 10 biggest Chapter 11 filings were by energy related companies.

So the thing to remember is that while it may be the company who files, it is the common investor who feels the most pain. Speak to a qualified bankruptcy lawyer for all of your bankruptcy questions or if you’re currently struggling with overwhelming debt.

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