February Bankruptcy Filings Down From a Year Ago

You can use statistics to promote your point of view, depending on whether you view your glass as being half empty or half full.

American Bankruptcy Institute Law Review

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A Point of View from the American Bankruptcy Institute

For instance, a statistical report just released by the American Bankruptcy Institute (ABI), titled February Bankrutpcy Filings Up 19 Percent Over January, emphasized that February bankruptcy filings are up 19 percent from January filings this year because of “the stagnant housing market and high unemployment rates.” A reader might conclude from this point of view, seeming to emphasize a glass half empty, that the economy appears to be standing still with no activity.

Another Point of View

Where it is true the housing market is still somewhat stagnant and unemployment rates are still high, the economy is showing signs of movement and recovery. The same ABI report contributed this statistic: February bankruptcy filings in 2012 have dropped 5 percent from the number of bankruptcy filings made in February 2011. The number of bankruptcy filings across the United States has historically been one of the many indicators of how well the economy is doing.

Image representing U.S. Small Business Adminis...

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A recent report made by the Small Business Administration indicates banks are beginning to loosen up on the availability of money for small business loans and lines of credit. Banking representatives have been quoted as saying small businesses surviving the Great Recession are financially stronger and healthier for their experience. Therefore, many banks across the country now believe these surviving small businesses are more credit worthy. Small businesses make up over 99.7 percent of all employer companies in the United States.

Historically, when banks begin to loosen money strings, it has been one of many indicators that the economy is beginning move forward again. Those who emphasize the facts that bankruptcy filings are still dropping overall since last year and money is not as tight as it was during the recession, might be viewed by readers as having emphasized a glass that is half full.

Statistical Analysis

In statistical analysis, I suppose the allegory of whether the glass is perceived as half empty or half full has its purposes when making a point or drawing a conclusion. The ABI is making a good point that the stagnant housing market and high unemployment rate might ought to be addressed before real economic growth can consistently occur. Like bankruptcy filings and availability of credit, both the housing market and employment rate are still just one of many indicators of how the economy is doing.

Concluding on a Positive Note

To conclude on a positive note, bankruptcy filings in February are down from the same time a year ago. Small businesses represent the best bet for improving the unemployment problem in the United States. With more available money, existing small businesses will begin to increase their payrolls while once again expanding their companies. New small businesses will pop up increasing job opportunities for our currently unemployed citizens, and we all know employment translates to less bankruptcy filings.

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