Yield-hungry investors have driven a robust rally in junk bonds this year, allowing many weak companies to avoid or postpone appearances in bankruptcy court by refinanc- ing their debt at attractive rates.

"Bankruptcies lag the economy, and you won't see any effects of a better economy for at least six months, and perhaps 12 to 18 months," he said. "Bankruptcies are a last resort for many people, and you're seeing filings now that typically arise from problems six to 12 months ago."

Court records show bankruptcy filings in the U.S. rose 19.6% in November from a year earlier, reports Bloomberg News. Total filings for individuals and companies rose to 115,000, according to data compiled by Automated Access to Court Electronic Records, a service of Jupiter ESources LLC in Oklahoma City released last week.

Even before Canada’s job market shifted back into high gear with Friday’s encouraging jobs report, it was clear something fundamental had changed. Never mind the recent prognostications by analysts about better days ahead. Sometimes all the cues you need can be found in the lives of the people behind the statistics.

Rising energy costs, soaring personal debt and weakness in the housing market fueled the growth of bankruptcy filings for February 2008, according to Jenny Anderson in an article appearing on the website for Automated Access To Court Electronic Records. AACER provides U.S. bankruptcy data to attorneys, lenders, employers and individuals.