Reports show business bankruptcies fell 22 percent in the first three quarters of 2012, compared to the volume of business bankruptcies filed in the first three quarters of 2011. If the current trend continues through this quarter, we will likely end the year with the lowest total bankruptcy filings nationwide since 2008.
The downward trend supports a strengthening U.S. economy and provides real proof that more businesses are recovering from the brink of disaster without filing for bankruptcy protection.
Fewer bankruptcies means greater average ROI for lenders, lower expenses in the legal department, and greater recoveries from collection activities. For the foreseeable future we can reasonably expect low interest rates and a somewhat relaxed lending environment to continue providing a favorable climate for small businesses, and even greater economic stability nationwide as larger corporations gain traction.
Commercial lenders may already be seeing changes for the better. Plan for a strong 2013 by cleaning up lingering defaulted loans and protecting your rights as a creditor if a business customer already filed for bankruptcy protection.
If you are a financial institution or a judgment-creditor with questions about protecting your rights to recover a defaulted loan, contact the experienced business litigation and transactional law attorneys at Glass & Goldberg. Glass & Goldberg provides high quality and cost-effective legal services and advice for clients in all aspects of business litigation and transactional law. Call us at (818) 888-2220, email us at firstname.lastname@example.org, or visit us on the web at www.glassgoldberg.com to learn more about the firm and to sign up for future newsletters.