A recent study from the Fraser Institute claims that the notion that medical expenses spikes the U.S. bankruptcy rate is wrong because Canada has a higher bankruptcy rate than the U.S. and Canada has nationalized healthcare. However, over at Creditslip, they debunk this finding by showing that the study looked at only bankruptcy statistics from 2006-07 after the U.S. had enacted strict new bankruptcy filing rules. If ten years of bankruptcy filing data is reviewed, Canada has a lower rate for eight of those years including 2008.
Archive for the ‘Bankruptcy Statistics’ Category
Canada doesn’t have higher bankruptcy rate than U.S.
July 12, 2009May bankruptcy filings: over 6,000 per day
June 6, 2009“According to data from Automated Access to Court Electronic Records (“AACER”), there were over 120,000 U.S. bankruptcy filings in May 2009 or 6,020 for each of the 20 business days in May. That is the first time daily bankruptcy filings have topped the 6,000 mark since the 2005 bankruptcy law was adopted.”
Bankruptcies jump 118% where housing debacle hit hardest
April 10, 2009Bankruptcies have nearly doubled in states like California, Florida, Nevada and Arizona.
Business bankruptcies up 23% in March
April 7, 2009“The number of businesses seeking bankruptcy protection hit its highest level in more than two years in March, as the recession sends more companies into financial crisis.
The 7,843 commercial bankruptcy filings last month represent a 23.2% jump from the 6,365 filings in February. It’s also the highest monthly total of business filings since at least 2006, according to Automated Access to Court Electronic Records, or AACER.”
Bankruptcy filings increasing rapidly
April 3, 2009While the increase in filings from February to March 2009 is only 9%, according Creditslips, this is deceptive because if this rate were annualized, it would mean a nearly tripling in filings up to 280% increase in 2009.
Chapter 11 no longer a safe haven
February 14, 2009After posting about the details on Charter Communications Chapter 11 filing announcement, I read this post from the Bankruptcy Beat which is from an ongoing bankrutpcy conference where Harvey Miller a top bankruptcy attorney talked about how recent changes to the Chapter 11 rules have worked against companies filing for protection. Miller said, ““Companies are avoiding Chapter 11 as the plague. It is the last option.”
Chapter 11 Bankruptcies up 62%
January 14, 2009Good post at creditslips.org about the under-reported Chapter 11 bankruptcies. In 2007, there were 6,200 of these rising to more than 10,000 in 2008. While the media has focused on the Circuit City bankruptcies, the greater number of them are filed by small businesses.
2008 bankruptcy filings up 32%
January 6, 2009
Layoffs update: Dec. 23rd
December 23, 2008Unisys cutting 1,300 jobs, freezing salaries, ending 401(k) matches
That’s the only announced layoff news I found. A couple other headlines:
Facebook, MySpace revenue dips
The story goes on to say that 85% of Facebook’s revenue comes from advertising. This might be the era of Web 2.0 technology but not so much as to Web 2.0 business models.
Struggling Beazer rewards top execs
The story says that despite losing more than $1 billion this year, the top Beazer officers are getting $1.4 million in bonuses. Huh?
Increased Bankruptcies for Eastern Massachusetts
November 17, 2008The rate of bankruptcies for businesses has accelerated considerably in the last few weeks;
*8 bankruptcies in Sept 2008 vs. 6 in Sept. 2007
*18 bankruptcies in October 2008 vs. 3 in Oct. 2008
*4 filing in the first couple weeks of Nov. vs. 2 in Nov. 2007
Reading Tea Leaves by Randy Wilson 