Tom Hals with Reuters reports that business bankruptcies in the U.S. went down by 24 percent in 2013. In the New Year, it doesn’t look like the state of business bankruptcy will be all that different from last year, at least according to Teresa Kohl, a bankruptcy expert Hals quotes: “Bankruptcy is still viewed as an expensive proposition and it’s something that people tend to avoid at all costs. I don’t think in 2014 there is going to be any dramatic change.”
Hals doesn’t offer much in the way of support for why Kohl thinks business bankruptcy won’t change much from last year, other than referencing the roughly six years that have passed since the recession. In these years, we’ve seen signs of a recovery, though modest.
Kohl goes on to make some predictions as to what types of businesses might face bankruptcy in 2014: healthcare companies and agriculture firms. In healthcare, “regulatory changes” (read: Obamacare) might precipitate bankruptcy woes. In agriculture, the cause might be a rise in the cost of raw materials.
All in all, the fact that business bankruptcies went down by 24 percent in 2013 indicates that things seem to be getting better, though Hals doesn’t speculate on that.
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Number Of Business Bankruptcies Down Last Year