Drop in Small Business Bankruptcies Outpaces Decline in Consumer Bankruptcies

Equifax Data Shows 18% Decrease in Small Business Bankruptcy Petitions

“The story behind today’s economic picture appears to include some positive business credit trends based on the results of a recent study conducted by Equifax Commercial Information Solutions. According to Equifax data, small business bankruptcies dropped for the sixth consecutive quarter – declining 18% in Q4 2010 from the previous year. On a national level, small business bankruptcies continue to decline at a faster rate than consumer bankruptcies, which decreased less than 1.0% from Q4 2009 to Q4 2010. This analysis raises some interesting questions. Are bankruptcy rates showing some signs of stabilization? Will this trend continue?”

Source: Equifax Commercial Information Solutions 2/2011