Los Angeles, California
The number of small businesses filing for bankruptcies has slowed in some parts of the U.S., but is still rising in other regions, especially the West, a new report finds.
Consumer bankruptcy filings slowed in November, but the total number of filings for 2010 is still the highest they have been since 2005.
In the U.S., personal bankruptcy filings fell 13 percent from October to November, according to data from the National Bankruptcy Research Center. November filings were still 2.2 percent higher than they were a year earlier.
About 1.6 million Americans are expected to file bankruptcy this year, the highest number since 2005 when Congress approved a major overhaul of the bankruptcy system that was supposed to make it harder for consumers to file for bankruptcy.
The Equifax examination of small business bankruptcy filings in the third quarter found that 11 of the 15 metropolitan areas with the highest bankruptcy filing rates saw a decline from the third quarter of 2009.
“Our analysis on small business bankruptcy continues to indicate ongoing uncertainty in today’s marketplace,” said Reza Barazesh, senior vice president for Equifax Commercial Information Solutions. “While business bankruptcies have begun to reverse course in some regions, it remains to be seen how small firms will steer through economic headwinds and sustain growth.”
In California, news was mixed, where Los Angeles, Santa Ana and San Bernardino saw bankruptcy rates increase year over year, but Oakland and San Diego experienced double-digit declines. Two other areas with major declines were Atlanta with an almost 27 percent drop, and Chicago with a nearly 17 percent decline.