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June 3, 2014 - We reported last year that throughout the 2012 fiscal year bankruptcy filings had dropped 22 percent from the previous year. According to the Wall Street Journal, U.S. commercial bankruptcy cases filed in the 2013 fiscal year have dropped an additional 24 percent. Commercial bankruptcy filings are down to their lowest since before the financial crisis.

Business and Non-Business Filings
  Years Ended September 30, 2009-2013

 

Year

Business

Non-Business

TOTAL

 

2013

34,892

1,072,807

1,107,699

 

2012

42,008

1,219,132

1,261,140

 

2011

49,895

1,417,326

1,467,221

 

2010

58,322

1,538,033

1,596,355

 

2009

58,721

1,344,095

1,402,816

 

Bankruptcy Filings by Chapter of the   Bankruptcy Code 12-Month Periods Ending September 30, 2009-2013

 

Year

Chapter

 

7

11

12

13

 

2013

753,995

9,564

405

343,651

 

2012

874,337

10,597

541

375,521

 

2011

1,036,950

11,979

676

417,503

 

2010

1,146,511

14,191

707

434,839

 

2009

989,227

14,745

487

398,210

 

 

 

 

 

 

 
                 

“The availability of cheap credit cards has led companies to opt for out-of-court restructurings, which can save money, time and mitigate creditor concerns. With interest rates low, companies that didn’t previously have access to capital markets have access and are able to refinance their way out of trouble” (Emily Glazer, Wall Street Journal)

It seems that this continued downward trend will continue to impact the business of professionals that service distressed companies.