All over America, times are hard. Right now many people are experiencing money troubles in their homes and at their work. A new study by Equifax, a credit reporting firm, shows that small business bankruptcies have dropped about 36 percent over the past two years. Yet despite a successful endeavor to bat down small business bankruptcy around America, Houston is resisting the national trend. In this particular city, times are hard and small businesses are taking the brunt of the financial difficulty.
According to the report, 117 companies in Greater Houston filed for bankruptcy in March 2012. This is the last month that has been recorded by Equifax. The Houston metro area happens to be the third most common area for a concentrated amount of bankruptcies. Los Angeles and Riverside, both in California, are the first and second most common places for a small business to fall to bankruptcy because of a financial struggle.
In the past two years, Houston’s bankruptcy rate has risen 40 percent, despite the fact that the national average has dropped to 36 percent. One bankruptcy lawyer in Houston says that the amount of filings has sparked since February. He thinks that it is important to remember that Houston is an entrepreneurial town. Places with a larger amount of small businesses will naturally have a greater amount of filings. He says that people in this city don’t mind taking risks, and sometimes with risks come the potential for failure.
Many small firms are unable to afford the cost of a Chapter 11 filing, so instead they file for a
Chapter 7. This normally comes with a liquidation, which can send these businesses into extinction but free the owners from massive amounts of debt. If you are a small business owner in Houston and it is time to file for bankruptcy, then a lawyer from Malaise Law Firm can help you with the proceedings.