June 6, 2009
Bankruptcy Petition Filings Fall in May - Can That be True?
Total filings in May, 2009 were 120,400, down 6.5% from the 128,720 petitions filed in April, 2009. This compares to 131,000 in March, 102,000 in February and 89,000 in January. The May rate equates to 1,445,000 for a year compared to 1,597,000 in 2004, 1,660,000 in 2003 and 1,578,000 in 2002.
These results surprised me. Although I file only a few consumer petitions each month, the phone calls I get every day are just getting ridiculous. I've been getting more calls than ever in my life from small businesses who want to file chapter 11 and basically faint when I tell them how much it costs. Some small businesses can be squeezed into chapter 13 but small corporations/LLCs/partnerships cannot. There should be a small business chapter 11 that actually works. The small business rules in the code now do nothing to help the small business, especially from the immense cost. But I digress. . .
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The savings rate is up, and consumer debt is down. Consumer filings dominate the totals and consumer filing rates track consumer debt levels, not the general economy. Business bankruptcies track economic cycles, but there are far fewer of them so they don't has as much of an impact on the total.
Posted by: ohwilleke | Jun 8, 2009 10:03:03 PM