The Sacramento Area has seen a Large Number of Bankruptcies

It’s been reported that small business filings in the Sacramento region rose by
13% in the first quarter when compared to the same time period in 2009. As a
bankruptcy lawyer in the Sacramento area, I’ve worked with many small business
owners who have had to deal with this weak economy.

Sacramento Hit Hard

The Sacramento area has been hit hard as over 500 small businesses filed for
bankruptcy in the first quarter. According to Equifax only two other areas of the
country had more filings—Los Angeles and Inland Empire. Again, both are in
California.

Credit Has Dried Up

One major problem for small businesses in areas such as Sacramento is that credit
has dried up. With a robust economy credit is plentiful but when things get tight
in terms of the economy, so too do the opportunities to borrow. When a small
business, which often has very little leeway in terms of cash flow, starts to struggle,
they often have a difficult time getting loans.

According to the Sacramento Bee, The U.S. Small Business Administration (SBA)
was involved in over 1,500 in 2007. Those loans, which went to companies in
the Sacramento area, totaled over $400 million. Two years later loans that were
supported by the SBA in the region stood at around 500, and they were worth $166
million.

Protecting Your Assets

If you’re one of the many small businesses that are struggling to keep up, you may
want to seek legal advice regarding your situation. Addressing problems related
to bankruptcy earlier rather than later can help ensure that you’re protected from
creditors.

Please contact our bankruptcy offices in Sacramento, San Francisco, Santa Clara, and
San Francisco California, at info@california-bankruptcyattorney.com or at 888-589-
1977 if you have any questions regarding bankruptcy.