X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Federal bankruptcy filings plunged 70% in 2006, the lowest number in 19 years, according to the Administrative Office of the U.S. Courts, which maintains the numbers. They reflect the first full year in which the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has been in effect. Bankruptcies filed in calendar year 2006 totaled 617,660, down from 2.07 million filed during 2005, according to the court statistics. The annual number for 2006 was less than the total filings in just the first three months of 2005. Three causes may have contributed to the drop, according to Margaret Mann, chair of the restructuring and insolvency practice at Heller, Ehrman in San Diego. There was a rash of filings in 2005 in advance of the new law so the measure is an abnormally high peak. The new law did make it tougher for people to file so anyone not in desperate straights did not file in 2006, she said. Lastly, in 2006 the economy had enormous liquidity, so businesses were able to sell property or find new financing and not have to resort to bankruptcy, Mann said. Although numbers fell significantly in 2006, they showed a slight end-of-year rise with fourth quarter numbers the highest of the four quarters for the year. The majority of bankruptcies involved predominantly non-business debts, falling by 71% for the year. Filings among businesses, a much smaller share of total filings dripped by 50% for the year, to 19,695 in 2006 from a high of 39,201 in 2005.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.