[1] Many factors have been cited for the decline, including low interest rates, a strong economy and, most recently, so-called free money available through pandemic relief. [2] However, while correct, these are reasons why fewer businesses need bankruptcy relief. They do not address why entities that need bankruptcy relief sometimes shun bankruptcy for other options such as receiverships, assignments for the benefit of creditors or composition agreements. What causes putative debtors to choose other forms of relief over bankruptcy? TRY LAW360 FREE FOR SEVEN DAYS

Source: Los Angeles Times April 04, 2022 19:04 UTC