Chapter 11 Filings Plummet 38% In Fiscal Year 2005

Law360, New York (March 14, 2006, 12:00 AM EST) -- As the economy grew stronger and willing lenders flooded the market, company bankruptcy filings in the U.S. dropped dramatically, according to statistics released this week by the Administrative Office of the U.S. Courts.

On Tuesday, the office revealed that the number of businesses seeking to file Chapter 11 plunged 38% for the fiscal year ending on Sept. 30, 2005.

Only 5,776 businesses sought Chapter 11 protection, significantly down from the 9,436 corporations looking to file the previous year.

The court administrative office releases quarterly and annual...
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