Bankruptcies May Dip Below Pre-Recession Lows

by Joel R. Glucksman on July 19, 2012

The number of both commercial and noncommercial bankruptcy filings fell during the second half of 2012, and analysts say the steady declines may prompt bankruptcies to fall to pre-recession levels by the end of the year.

A joint study conducted by the American Bankruptcy Institute and Epiq Systems reveals overall bankruptcy petitions fell 14 percent during the first half of the year. Those entities and individuals which filed for protection under bankruptcy law dropped to 632,130 from 731,500 during the same period in 2011. Commercial filings experienced the most significant decline, as they fell 22 percent during this period to 30,946 from 39,598. Noncommercial court proceedings dropped by 13 percent to 601,184 from 691,902.