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
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
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.