January 22, 2013 - Bankruptcy filings are at the lowest since the financial crisis of 2008.  If we continue with lower interest rates, continued deleveraging by households, and reduced consumer spending, economist expect that bankruptcy filings will continue to decline into the foreseeable future.  Data listed below is a summary of data taken from a report by Epiq Systems, Inc.  

 

 

2011

2012

% change

Total Bankruptcy Filings

1,379,658

1,185,328

-14%

Commercial Filings

74,415

57,788

-22%

Chapter 11 Filings

8,658

7,760

-10%

         

 

 

 

 

 

 

December 2011

December 2012

% change

Total Bankruptcy Filings

96,527

75,556

- 22%

Commercial Filings

5,569

3,739

-33%

Chapter 11 Filings

742

559

-25%

 

 

 

 

         

This continued downward trend has had an impact on the business of professionals that service distressed companies.

At least for now, law firms, auction company, turnaround consultants and other professional advisors to both debtors and creditors at the bankruptcy table must adapt to an ever shrinking pool of prospects.  This is true not only for our hometown of Buffalo, but nationwide.