The current economic recession is sending more and more companies into financial crisis. The number of businesses filing for bankruptcy protection is at its highest level in over two years.

According to the AACER (Automated Access to Court Electronic Records) there were 7,843 commercial bankruptcy filings during the month of March. This was up 23% from February. It is also the highest monthly total of business filings since 2006.

Other data from the AACER showed that in the first quarter of this year 20,251 businesses sought either Chapter 7 or Chapter 11 protection; a 52.4% increase over the 13,291 business bankruptcy filings during the same period last year.

Bankrupt employers, trustees and anyone considering purchasing bankrupt businesses may have specific procedural requirements to insulate themselves from additional employer liabilities.

Pat Powell