Though total and personal bankruptcies continue to hover at record levels, business bankruptcy filings dropped noticeably in 2010.
The Administrative Office for the United States Courts unveiled bankruptcy statistics for the last calendar year and found the total of business filing at 56,292. That is a 7% decline from CY2009. In fact, 2010 marks the first year Chapter 11 filings decreased since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ushered in sweeping changes, which became effective in 2006.
On the flip side, the rate of total bankruptcies, fueled by personal filings, surged by 8% in CY2010. U.S. Courts said filings in 2010 totaled 1.59 million. However, it was noted that the rate of bankruptcy growth was significantly smaller from 2009 to 2010 than between 2008 and 2009.
Brian Shappell, NACM staff writer