Small Business Bankruptcy Situation Improves

Bankruptcies decline in hardest-hit areas

Today is perhaps not the best day to conduct a pep talk regarding the economy; the Dow’s been in the red pretty much since the market opened.  However, a new report’s indicated that small business bankruptcy trends seem to be heading in the right direction.

Equifax released some bankruptcy stats today, and they cover the third quarter of this year and a number of metropolitan statistical areas (MSAs).  Here’s the most dramatic finding: "11 of the top 15 MSA’s with the highest number of small business bankruptcies in Q3 2010 saw a year-over-year decline from Q3 2009."

Otherwise, Equifax said in a statement, "[T]he total number of bankruptcies among the top 15 MSA’s with the highest number of small business bankruptcies in Q3 2010 declined 4.41% from 6,870 in Q3 2009 to 6,567 in Q3 2010 . . ."

Granted, that’s not a huge improvement, but something is better than nothing, and at the least the figure is large enough to look like more than a blip.  Let’s hope the fourth quarter corresponds with an even bigger improvement.

By the way, any small business owners interested in relocating to a bankruptcy-resistant location should know that Amarillo, Texas reported the lowest bankruptcy total (seven) in the third quarter.

There are 2 Comments. Add Yours.
  1. It depends on if your business is incorporated and also if you have any personal liability associated with the company, i.e. a line of credit backed by your house.

  2. Some small business may benefit from filing a Chapter 11 or Chapter 13 bankruptcy but should contact an attorney to find which code will be their best solution.

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