More and more smaller businesses are filing for bankrupcty this quarter as compared to last year, according to reports. This is in comparison to the falling number of larger firms ($100 million or greater in assets) filing bankruptcy petitions.
In Boston, Chapter 11 bankrupcties were up about 50% compared to last year. “What you’re seeing is smaller businesses filing (for bankruptcy),” said a local bankruptcy attorney. “Commercial real estate is going to be an area of serious concern in 2010 and 2011. There are quite a number of commercial real estate loans maturing this year and next year, and the general sense is there will be insufficient credit available to refinance many of these properties.”
According to a recent report in American Lawyer, no firm with more than $1 billion in assets filed for Chapter 11 bankrupcty protection this quarter.
Contrastingly, the number of firms with more than $100 million in assets that filed for bankrupcty was down by over 50% from last year.
Another local Boston bankruptcy lawyer said that while last year saw many more large businesses filing for bankruptcy, many smaller companies that were barely holding on in 2009 have finally succumbed to pressure.
“The word fatigue comes to mind — they’ve run out of credit,” he said.
Bankruptcy is something that many people have to face, everyday. If you are looking for information on how best to approach a bankruptcy, do not hesitate to contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, at 414-377-0518.