Brian Davidoff was quoted by Los Angeles Daily Journal reporter Eli Wolfe in an article that ran January 27, 2017, discussing a recent report by the U.S. Office of Administrative Courts that found bankruptcy filings in 2016 were fewer than any year since 2006.
“I’ve been doing this for over 30 years,” said Davidoff. “And it is the lowest that I have ever seen them.”
According to the article, the report noted that 794,960 new federal bankruptcy cases were filed in 2016 which marked 5.9% fewer cases than in 2015. Davidoff pointed to the low interest rates maintained by the Federal Reserve over that last several years as one of the most significant contributing factors to this decline.
“The availability of low interest rates makes the availability of capital much easier, so a lot of mistakes can get papered over with new financing,” he said.