It's no secret that the national economy has been difficult to navigate for about the last five years. Although most people would admit that the current economic climate is definitely more friendly now than it has been, growth is still too incremental and the unemployment rate remains stagnant. There is no telling what the catalyst will be that finally jumpstarts the economy to get back to pre-2008 levels, but many business owners are looking for that moment every day.
Just as there are pockets of the country where local economies and housing markets are rebounding nicely, there are other pockets where there doesn't seem to be any bright spots on the radar. The capital of California, Sacramento, appears to be one such locale.
According to a recent report, Sacramento is leading the nation in the number of bankruptcy filings by entrepreneurs. That is troubling news indeed. Although the reasons may vary, comments in the recent article speculated that this current trend is fueled by business owners who were able to hold out through the worst of the economic downturn by turning to influxes of cash from personal accounts, like retirement funds. Now those funds are finally exhausted and the economy remains moribund.
Many businesses that file for bankruptcy will chose Chapter 11, hoping to get the time they need to reorganize and stay afloat. Chapter 11 bankruptcy has helped countless California companies stay in business through the rough tides of the economy, and Escondido businesses that are having a tough time managing business debt and getting customers through the door may find it beneficial to get more information about how Chapter 11 bankruptcy can help.
Source: CBS Sacramento, "Sacramento Leads Nation In Entrepreneurial Bankruptcy Rate," Sept. 19, 2013