The alarmists are wringing their hands. The deadline for the change in the bankruptcy law is approaching. We hear words like “record filings” and “bankruptcies soar” from the press. Keep your eye on the facts, however, and not the hype. Bankruptcies are, and will be, up a bit for the next few weeks. But so far, the increase is only 11%. I predict that total bankruptcies when looked at the entire year will not differ significantly from past years. And next year should be significantly lower. Businesses that truly need bankruptcy as an option will still be able to use this strategy, but the changes will no longer make it an easy way out. And it should not be the easy route, as that was never the intent of the law. Bankruptcy was intended to be the last resort, and the laws were established to make the process as orderly as possible.
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