New Statistics Demonstrate a Surge in the Rate of Business Bankruptc...

The Federal Court System's Newsletter has an interesting article in the April 2010 edition titled "By the Numbers - Changes in Business Bankruptcies". The article includes recent statistics documenting the fact that the rate of business bankruptcy filings is rising at an even faster rate than the rapidly increasing rate of consumer bankruptcy filings. One thought-provoking section of the article notes that the increase in the percentage of business bankruptcies compared to overall bankruptcy filings may be attributable to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). It is widely acknowledged that BAPCPA was aimed almost exclusively at consumers. The article notes that BAPCPA may have disproportionately affected the number of consumer bankruptcies resulting in the acceleration of the percentage of business bankruptcies.