After reaching levels that didn’t seem possible in 2008 & 2009 business Bankruptcy filings are on their way down. This is very good news for both the business community and the consumer. For the business owner it means that the customer has finally returned to buying as a result of their financial situation improving and better for the consumer because many of them have returned to work and their home values have finally started to rise again. Whew!
The fact are that business bankruptcy filings are at their lowest point since 2006 and this is just part of the trend we are seeing in California and Nationwide. The shift in the fortunes of business means that people get hired, taxes get paid, construction people are called in and manufacturing improves. All of this is good news and we hope for this to continue.
While this news is some of the best news we have seen in almost a decade there are still storm clouds on the horizon and smaller firms are much more likely to file bankruptcy in the future that they have been in the past. Items like sick leave, decreased labor force and the demand from some workers and politicians to raise the minimum w age to something that will be hard to sustain are very real issues and have to be dealt with.
States like we live in along with Illinois and Texas tend to generate the highest number of business bankruptcies and this is due to the sheer size of these states along with the high number of businesses that are incorporated within them. For some businesses bankruptcy can be a great move depending on many variables and it’s always best to enter into this knowing what the short term and long term ramifications are before choosing the direction you will move.
My name is Quinton Miller and I work with business law. Please call on me at 916-714-1717 or visit me at www.quintonlaw.com I have experience you need and I can help!