Corporations in America may be struggling, but they're not filing for bankruptcy. In fact, since hitting a 15-year peak in the second quarter of 2009, filings have dropped an average of 3.2 percent per quarter, according to figures released by the American Bankruptcy Institute.
Sounds like a beacon of light in an otherwise dark and dismal economic landscape, right?
Don't be fooled, says Llloyd Palans, a bankruptcy expert in the New York office of Bryan Cave. "The dilemma that we are in with the downward spiral of business bankruptcies is a result of what I'd call a perfect storm," says Palans. He says the drop—from 16,014 in 2009 to 12,304 in the most recent quarter—is the result of a confluence of conditions never before experienced.
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