Wednesday, June 24, 2009
Number of Bankruptcies Filed In Georgia Skyrockets
Bankruptcy trustees in South Georgia claim that the number of bankruptcies being filed is growing every week. Whether they are personal foreclosures or business bankruptcies, the number of buildings being auctioned off every week is growing.
While many say that the former employees of businesses that have filed for bankruptcy will start anew and make their own businesses, at the moment, the economic downturn is hurting many different people in the South.
One of the biggest areas of foreclosure and bankruptcy is in the building and construction market. There are many small construction businesses filing for bankruptcy because very few new homes and commercial buildings are being built at the moment. Carpet companies, electric companies, and plumbing companies are also feeling the hard times because there is much less work to go around than in previous years.
One of the reasons these companies are filing for Chapter 7 bankruptcy, Chapter 13 bankruptcy, and Chapter 11 bankruptcy is because they can't operate at a loss for very long. The construction business operates on a bid system; the people who offer to do the job at the lowest cost for the buyer usually get the job. Unfortunately, the lower and lower your offer gets, the less profit you make on the job itself. In the end, businesses are unable to make enough profit to continue running.
If you are a small business owner and you believe you will have to file for bankruptcy, one of the best things you can do is contact a bankruptcy lawyer to help you. An experienced bankruptcy attorney can help you pay off creditors and make sure you start on the road to financial recovery as quickly as possible.