Bankruptcies rise the most in Lost Angeles and Chicago

Matador Legal — Thu, 02 Jul 2009 12:56:10 +0000

For the five month period from Jan to May 2009, total commercial bankruptcy filings stood at 36,106. The total filings are up from 23,829 for the same period last year, showing an increase of 52%. Compared to the same period in 2006, after Bankruptcy laws were revised to prevent abuse, the increase is 240%.

The vast majority of these filings have been filed by small business owners and entrepreneurs. The increasing bankruptcies in small businesses and fewer start ups is expected to cause a major dent to the economy. In a recession, generally more number of people are thrust into becoming self employed. But this time the tighter credit market and stringent bankruptcy laws have an adverse impact on this trend as well.

Small businesses with fewer than 500 employees make up almost half of the total gross domestic product. According to Equifax, the major run up in the small businesses is caused by transportation industry which includes automobile and airline business. After transportation, construction, manufacturing and retail industries are the major causes.

Small businesses filings have grown most in the Los Angeles and Chicago metro area, according to Equifax.

The lack of credit remains a major factor for these high bankruptcy numbers.

Business Failures climb in Santa Barbara

Matador Legal — Tue, 30 Jun 2009 17:31:04 +0000

Bankruptcies in the Tri-county have risen by more than 65% this year. In the Santa Barbara Bankruptcy court, there have been 1,467 chapter 7 filings this year compared to 896 in the same period last year, an increase of 63%. The Chapter 11 filings have been 11 compared to 3 last year.The profile of small firm owners and entrepreneurs includes flooring contractor, filmmaker, chiropractor, plastic manufactures. Most of the bankruptcies can be accounted to the unavailability of credit and unexpectedly low sales.

A business chapter 7 is different from a consumer chapter 7 as in a business chapter 7 the debts are not entirely wiped away.

http://pacbiztimes.com/index.php?option=com_content&task=view&id=940&Itemid=1

Matador Legal » Commercial Bankruptcy

Bankruptcies rise the most in Lost Angeles and Chicago

Business Failures climb in Santa Barbara