Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Business Bankruptcies Continue to Decline
Author: Joel R. Glucksman
Date: August 13, 2013
Key Contacts
Back
Americans have been inundated as of late with news relating to several high-profile business bankruptcies, suggesting that more companies are continuing to struggle as the economy makes its slow recovery. Despite the heavy coverage, a new report indicates that the number of companies seeking bankruptcy protection is actually falling.
New Generation Research, a unit of Bankruptcydata.com, reports that corporate bankruptcy filings are down 30 percent so far in 2013, compared to where they were at this point in 2012. The latest research suggests that the downward trend of business bankruptcy proceedings that has taken hold over the last four years may continue into the future as the economy strengthens. The findings reveal that bankruptcy filings in the second quarter of 2013 declined 35 percent from where they stood during the same period in 2012.
The study cites several reasons for the improved condition of U.S. businesses, which include consistently low interest rates and tighter credit and lending standards to reduce the level of risk posed to the economy. In addition, small businesses may be taking a more cautious approach toward spending and investing more in strengthening their operations. Consumer confidence, which continues to fluctuate mildly, has also climbed to higher levels than those posted in 2012, a scenario that has sparked greater levels of consumer spending. The latter currently accounts for 70 percent of the economy.
The breakdown of the study’s findings reveal that California tops the list of states with the highest number of quarterly filings as well as yearly filings. Approximately 12.91 percent of companies sought protection during the second quarter of 2013 in California. Delaware followed with 11.67 percent of companies filing for bankruptcy, while Florida came in third at 8.71 percent.
Although some of the nation’s largest companies – such as Hostess, American Airlines, and Kodak, to name a few – sought bankruptcy protection, many have emerged from proceedings in a strong position.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.