Epiq Systems, Inc., a provider of managed technology for law firms, advises that total business bankruptcy filings in the United States have increased by 5% on a year-on-year basis, to a total of 65,511.
However, while consumer bankruptcy filings were up 5%, business Chapter 11 filings were up 30% on the same basis, from 298 Chapter 11 filings in November 2014 to 390 filings in November, 2015.
Nevertheless, the Wall Street Journal has just reported that the United States economy expanded at a modest pace in November 2015, with a rise in consumer spending and the beginnings of increased demand for labor. According to the Fed, there was modest or stronger growth in 10 out of its 12 districts.
The reports from Epiq and from the Fed come amid anticipation that the Federal Reserve’s Open Market Committee will begin the process of raising interest rates — at or near zero for the past many years — at the Committee’s December 15 meeting in Washington, DC. As Fed Chair Janet Yellen has noted, waiting too long to end the era of near-zero interest rates might result in the Fed tightening too quickly and causing market dislocations.
On the other hand, once the Fed begins tightening the screws on interest rates, it is entirely unclear what effect this will have on bankruptcy filings. Right now, there are plenty of credit facilities out there in the economy that can be handled relatively easily at current interest rates, but may become ever so much dicier at higher rates. Or, to mangle the metaphor, one can quote from the Sage of Omaha Warren Buffett:
“Only when the tide goes out do you discover who’s been swimming naked.”
Do you have any feedback, thoughts, reactions or comments concerning the increase of business bankruptcy filings? Feel free to leave a comment below for Joel R. Glucksman of if you have any questions about this post or would like assistance with your legal needs, please contact me or the Scarinci Hollenbeck attorney with whom you work.
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
