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Number of New Bankruptcies Getting Lower

Posted on in Bankruptcy

Reuters reports that U.S. businesses and consumers might end the year with the lowest number of bankruptcies since before the 2008 financial crisis. According to data released on July 5, the amount of businesses and consumers filing for bakruptcy fell 14 percent in the first half of 2012.

Epiq Systems Inc, which manages claims and documents for companies in bankruptcy, says that in the first six months of the year, new bankruptcy filings went down to 632,130. Around 30,000 businesses filed for bankruptcy, which means a drop of 22 percent. The number of consumers seeking court protection from creditors also fell 13 percent, putting the number at around 601,000.

Samuel Gerdano, executive director of the American Bankruptcy Institute, told Reuters that the amount of new bankruptcies might reach a level that we have last seen before the financial crisis in 2008. According to Gerdano, this decline is the result of low interest rates. The U.S. Federal Reserve has kept interest rates at rock-bottom levels since the crisis.

Even though there is a drop in filings, a number of large companies have ended up in bankruptcy this year. Hostess Brands, Inc., the maker of Wonder Bread and Twinkies, went bankrupt, as well as textbook publisher Houghton Mifflin Harcourt Publishers, and photography icon Eastman Kodak Co.

Bankruptcy is an issue that companies and consumers deal with constantly with varying results. It is a matter that requires knowledge and skill that only educated professionals have. To get the support you need when filing for bankruptcy, contact one of our knowledgeable Crystal Lake lawyers today for sound legal advice that is specific to your case.

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