There has been a lot of concern in this recession on the consumer bankruptcies, but as we move forward, this is moving to the corporate sector. A lot of these are expected in the commercial real estate business.

General business bankruptcies stood at 43,546 cases in 2008 compared to 28,322 in 2007.

The important point to contemplate for all the stakeholders involved like, Bond holders, creditors, management and employees is whether to preserve the value or not. This sometimes makes distressed firms to retrain forensic accounts.  The accountant’s findings determine if the company should voluntarily seek bankruptcy or whether the creditors should force a company into chapter 11.

Source:

http://www.ajc.com/services/content/business/stories/2009/05/24/bankruptcy_accounting_corporate.html