January 11, 2011
By: Brenna Lemieux
The state of the global economy as we transition into a new year provides us with plenty of clues about what to expect from financial markets and bankruptcy courts in 2012, according to BusinessInsider.com. The news outlet suggests that current indicators (including the recent bankruptcy filings of MF Global, American Airlines, and other large companies) hint at what’s to come in 2012.
The bankruptcy filing of restaurant and ice cream chain Friendly’s may have been prophetic, according to analysts. Sluggish growth in the restaurant and hospitality sector, coupled with Americans’ continued reluctance to return to frequent meals outside of the home, could mean more bankruptcy filings for the food industry.
Murmurings about a potential bankruptcy filing from sandwich chain Quizno’s in recent weeks seem to confirm this prediction. In other arenas, fluctuations in the prices of commodities such as cotton could mean distress for clothing retailers in the coming twelve-month cycle.
Partly because of rapid expansion between 2007 and 2009, clothing retail chains may be forced to downsize and/or close some of their locations as they reorganize their debts. Insiders predict that individually owned, boutique-style clothing retailers will be hit even harder than chains.
Finally, 2012 may well be the year that American cities and municipalities begin to file for bankruptcy protection in force. While it may seem as if 2011 was the year in which that happened, many sources suggest that the market conditions that prompted this year’s filings will only worsen in 2012 and lead more towns and cities to seek Chapter 9 bankruptcy protection.
How individual bankruptcy filers (and potential filers) are likely to fare in 2012 is less clear. Much of the country saw decreased bankruptcy filing numbers in 2011, but whether that trend continues into 2012 is as yet not quite clear.
Some analysts suggest that the personal bankruptcy filings likely peaked in 2010 and will start to steadily (but slowly) decline in the next few years; however, given the continually languid state of the employment market, personal bankruptcy filings could creep back up in the coming months.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.