Drop in Bankruptcy Filings Sends KGI to All-Time High

The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, jumped an unprecedented 20.5% in April to 1472.7, surpassing its former all-time high of 1301.1, set in June 2005. This increase is the greatest monthly change in the six-year history of the KGI.

The Index?s increase was based mainly on the historic fall in the number of U.S. bankruptcy filings. In the first quarter of 2006, the number of filings fell from 667,431 to 116,771, reflecting the full impact of recently adopted federal bankruptcy legislation. Kaulkin Ginsberg has been predicting a rise in the KGI due to the reduced number of bankruptcy filings.

?The new bankruptcy legislation is leading to fewer filings and requiring more debtors to satisfy their financial obligations,? said Paul Legrady, Director of Kaulkin Ginsberg?s Research Group. ?This is good news for receivables management companies and the creditors they serve.?

The KGI is a product of Kaulkin Ginsberg’s Research Group, which provides industry-specific publications and custom research services to the ARM industry. For more information about the Kaulkin Ginsberg Index, see www.kaulkin.com/research/kgi or call Paul Legrady, Director of Kaulkin Ginsberg’s Research Group, at 301-907-0840 ext. 104.