Riverside and Sacramento metro areas had more small business bankruptcies then any other California localities according to a new article by Equifax. California led the U.S states in small business bankruptcies . This was a 15% increase from the last quarter. Small business throughout California are experiencing the impact from the current economic conditions. I feel that this is going to have a huge impact on individual bankruptcies as well as it is typically small businesses that lead us out of a recession and do a lot of hiring. Credit conditions are still difficult and especially difficult for small business. With the increase in bankruptcy filings being up the banks are going to keep their lending standards tight unless incentivized by the government to start lending to small businesses again.
Unfortunately with analyzing other trends in housing that have recently come out my belief is that this increase in bankruptcy filing is small businesses will not slow down. New construction is down and many of the small businesses in Riverside County are based on growth and construction. Bankruptcy is a viable option to restructure debts as well as to liquidate and protect yourself from creditors. Talk to a Riverside bankruptcy attorney if the current economic conditions have affected your business