• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

Bankruptcy Expert: 1.4 Million Companies Could Go Under

hypocritexposer

Well-known member
Bankruptcy Expert: 1.4 Million Companies Could Go Under

Friday, August 14, 2009 11:05 AM


WASHINGTON/WILMINGTON, Del. -- U.S. bankruptcy filings rose 38 percent in April-June from a year ago, according to court data released on Thursday, as consumers and business were hit by rising unemployment and a lack of credit.

Overall, 381,073 bankruptcies were filed in the second quarter, up 15 percent from the first three months of the year and up 38 percent from a year ago, according to the Administrative Office of the U.S. Courts.

More than 16,000 businesses filed for bankruptcy in the quarter, the highest in the three-month period since 1993, according to the American Bankruptcy Institute.

The number of business failures rose 64 percent from the same quarter a year ago and Chapter 11 business filings more than doubled in the first half, compared to the first half in 2008. Major second-quarter filings included Chrysler LLC and General Motors Corp, both among the 10 largest filings ever, which sent many of their suppliers into bankruptcy as well.

"I think what we're seeing is a significant increase in Chapter 11 filings in the small business area, among businesses that would have traditionally weathered the economic storm," said Jack Williams, a professor at the Georgia State University College of Law.

Williams said he expects total filings to reach 1.4 million this year, which would be the highest since 2005, when there was a surge of consumer filings ahead of legal changes.

He said bankruptcy filings tend to lag an economic rebound by up to a year. With an increasing number of state governments cutting workers, he said the filings could accelerate.

"We may be about to see another significant spike."

Tennessee led the country with the highest concentration of filings at 8.1 filings per 1,000 people, double the national average of 3.89 per 1,000. Nevada, which has been hard hit by the housing crash and drop in tourism, had the second-highest concentration of filings.

Alabama, Georgia and Indiana rounded out the five hardest hit states.

Alaska, the District of Columbia, Wyoming, Hawaii and Texas had the fewest filings per 1,000.

States hard hit by the crisis in housing and the automotive industries, such as Michigan, Florida and California, continued to have large numbers of filings. While filings in Michigan increased only 4 percent, those in California and Florida rose more 20 percent on quarter.

http://moneynews.newsmax.com/financenews/bankruptcy/2009/08/14/247926.html
 

hypocritexposer

Well-known member
"I think what we're seeing is a significant increase in Chapter 11 filings in the small business area, among businesses that would have traditionally weathered the economic storm," said Jack Williams, a professor at the Georgia State University College of Law.

Where's the stimulus money? Where does "card check", or unions fit in?
 

backhoeboogie

Well-known member
The last I heard 35% went over seas.

How much did it cost again for us to buy GM? I hope we got a real bargain for buying a company that was failing. We didn't spend too much did we? What state is Obama from again? Are there any GM interests there?
 

hypocritexposer

Well-known member
backhoeboogie said:
The last I heard 35% went over seas.

How much did it cost again for us to buy GM? I hope we got a real bargain for buying a company that was failing. We didn't spend too much did we? What state is Obama from again? Are there any GM interests there?

...former GM interests or existing union interests?
 

backhoeboogie

Well-known member
hypocritexposer said:
backhoeboogie said:
The last I heard 35% went over seas.

How much did it cost again for us to buy GM? I hope we got a real bargain for buying a company that was failing. We didn't spend too much did we? What state is Obama from again? Are there any GM interests there?

...former GM interests or existing union interests?

Don't unions typically support democrats?
 
Top