ALM’s Corporate Counsel website reports that the main source of concern for bankruptcy lawyers is that consumer bankruptcies – which make up more than 90 per cent of all filings every year – are set to take the brunt of the hit. Figures for this year are still hazy, but the number of business that filed for bankruptcy protection in 2011 has been released and they show that 1.4 million cases were filed – a substantial drop from nearly 1.6m filings in 2010.
Out of court deals
The figures come from the American Bankruptcy Institute, which reports bankruptcy filings from the Administrative Office of the US courts. They reflect the shift towards out-of-court restructurings using high-yield debt financing.
David Epstein, a professor at the University of Richmond School of Law, told ALM: ‘My sense is that at least most lawyers believe that the number of filings, the number of business filings, will continue to go down in 2012.’
'Pretty quiet'
Laura Davis Jones, head of boutique Delaware bankruptcy law firm Pachulski Stang Ziehl & Jones agreed that the filings will continue to drop and that her firm will have to concentrate on current cases rather than looking forward to fresh matters. She said: ‘I think 2012 filings will be slower. It’s going to be a pretty quiet front in 2012. They’ll be able to buy a little time and kick the can down the road.’
Out of court deals
The figures come from the American Bankruptcy Institute, which reports bankruptcy filings from the Administrative Office of the US courts. They reflect the shift towards out-of-court restructurings using high-yield debt financing.
David Epstein, a professor at the University of Richmond School of Law, told ALM: ‘My sense is that at least most lawyers believe that the number of filings, the number of business filings, will continue to go down in 2012.’
'Pretty quiet'
Laura Davis Jones, head of boutique Delaware bankruptcy law firm Pachulski Stang Ziehl & Jones agreed that the filings will continue to drop and that her firm will have to concentrate on current cases rather than looking forward to fresh matters. She said: ‘I think 2012 filings will be slower. It’s going to be a pretty quiet front in 2012. They’ll be able to buy a little time and kick the can down the road.’
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