Finch Ratings is predicting that the number of corporate bankruptcy filings in 2012 will double from last year. According to reports, companies were able to find short term fixes to their debt problems in 2011, but now companies will start to need long-term solutions such as filing for Chapter 11 bankruptcy.

Defaults on corporate bond will likely rise to 3 percent in 2012 compared to only 1.4 percent in 2010. This doubling of defaults compared to last year is still much lower than 2009 when companies panicked to pay off their debts.

According to CNN, the companies that are most likely to default on their debt are companies valued between $200 million and $1 billion. However, this prediction does not mean that companies with more or less values than the range given can't file for Chapter 11 bankruptcy as well.

Defaults on loans in 2009 were roughly $80 billion. Last year they were approximately $10.2 billion and they are likely to double that this year. When a short term fix leaves financial problems unresolved, bankruptcy could be one option for businesses to handle their increasing debt situation.

Companies might want to consult with an experienced bankruptcy attorney. These professionals can help companies determine the correct path for getting out of debt as well as help them file for bankruptcy. They can help businesses develop a reorganization plan for Chapter 11 bankruptcy, which could allow the business to continue operating without liquidating assets. The court could then oversee restructuring of debt.

Source: CNN Money, "Bankruptcies 2012: Doubling down," Maureen Farrell, Jan. 4, 2011