Bankruptcies Were Way Down in the First Quarter
But It’s Too Early to Conclude Anything from It
The reported numbers are estimates, and the final numbers won’t be released by the courts until near the end of April.
Assuming they are basically correct (only 103,000 filings in the first quarter of 2006, down 73% from 382,000 in the first quarter of 2005), they don’t yet prove that the so-called “Bankruptcy Reform” law that took effect in October of last year will permanently reduce filings.
But I’m guessing that filings over the long-term will be down about 50%. The second quarter’s results will be a better reflection of long-term trends. Whether all of this a good thing for consumers or lenders remains to be seen. Color me skeptical.
