According to Equifax Inc. (NYSE: EFX), which analyzed its comprehensive small business database for the study, commercial bankruptcies among the country’s more than twenty-five million small businesses increased by nearly 81% in June 2009 from June 2008..  

10,339 bankruptcy cases were filed nationally in June 2009, markedly up from 5,712 a year ago, according to the data.

California is the most negatively affected state with ten MSA’s (metropolitan statistical areas) among the fifteen areas with the most commercial bankruptcy filings during June. Los Angeles, Riverside, San Bernardino, and Sacramento led the nation in small-business bankruptcy cases. The other MSA’s with the most bankruptcy filings during the month include:

• Charlotte-Gastonia-Concord, NC-SC
• Atlanta-Sandy Springs-Marietta, GA
• Portland-Vancouver-Beaverton, OR-WA
• Dallas-Plano-Irving, TX
• New York-White Plains-Wayne, NY-NJ
• California (excluding MSA’s within the state)
• Oakland-Fremont-Hayward, CA
• Santa Ana-Anaheim-Irvine, CA
• Denver-Aurora, CO
• San Diego-Carlsbad CA
• Oregon (excluding MSA’s within the state)
• Houston-Sugar Land-Baytown, TX

“The data shows that the economic pain is continuing for small businesses across the country,” said the head of North American research for Equifax’s Commercial Information Solutions division, Dr. Reza Barazesh. “While it may not be quite as intense in some areas as what we saw earlier this year, we’re still seeing hefty increases in the number of bankruptcies in a lot of major metro areas.”

The Houston increased to 153 bankruptcy cases from 84 the year before; Atlanta MSA increased to 208 from 93; and Charlotte, which wasn’t even in the top fifteen a year ago, had 225 bankruptcies in June, the fourth highest of any MSA.

Equifax reviewed and analyzed small business data for the month of June, the most recent month for which complete data is available, and compared it with results from June 2008. Equifax defines a small business as a commercial entity of less than one hundred employees.

The fifteen metro areas with the least small-business bankruptcy filings are:

• Springfield, MA
• Lafayette, LA
• Cedar Rapids, IA
• Charleston, WV
• Hagerstown-Martinsburg, MD-WV
• Hawaii
• Huntington-Ashland, WV-KY-OH
• Clarksville, TN-KY
• Gainesville, FL
• Gulfport-Biloxi, MS
• Huntsville, AL
• Lynchburg, VA
• Baton Rouge, LA
• Beaumont - Port Arthur, TX
• Brownsville-Harlingen, TX

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According to the U.S. Bankruptcy Court for the District of Colorado there were 13,041 new cases filed during the first half of 2009. During the same period of time last year there were only 9,470 bankruptcy cases.

A Denver Post article published on July 16th stated that “heavy mortgage debts and a tough economy” forced the number of personal bankruptcy cases filed in Colorado up thirty-eight percent in the first half of this year. This is slightly higher than the thirty-six-point-five percent increase in those who filed nationally during the first half of 2009. The American Bankruptcy Institute claims that the overall number of national cases by the end of 2009 could reach one point four million.

Apparently, many of the bankruptcy cases originated with speculators who tried to invest in real estate.

Small businesses, especially retailers, are hurting as consumers conserve on spending. Business failures, such as Monument-based Poelstra Family Enterprises, owner of the Taste of Life Natural Market & Prepared Meals who recently filed Chapter 11, are compounding the problem.

Bankruptcy filings in Colorado are on track to match levels reached in 2003, toward the end of the last economic downturn. Brad Bolton, clerk for the bankruptcy court in Denver, believes that at that time, it was easier for people to rely on their home equity and credit cards to stay afloat. “A lot of people are overextended and unemployed. It is not as easy to live off consumer credit like it was four or five years ago,” he stated.

With this national and state trend projected to continue throughout this year, it is important to consider bankruptcy as a viable option before it is too late. If you live in the Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden, Colorado area, and want to investigate the possibility of filing for bankruptcy contact me at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.

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I was perusing the U.S. Bankruptcy Court - District of Colorado website this morning and noticed the cautionary information listed on one of the pages. I realized it might be useful for many of you who are considering filing personal bankruptcy in Denver or any of its outlying areas. So, I am posting the information below.

Deadlines in bankruptcy are extremely important. Failure to observe them can jeopardize your rights, claims or interests in your case.

Some of the responses to your questions will vary depending upon whether your case was filed before October 17, 2005, the effective date for changes to the Bankruptcy Code.

Through January 20, 2006, 81% of the cases dismissed under the new provisions of the Bankruptcy Code were filed by debtors who did not have an attorney.

The Court staff cannot give legal advice.

The Clerk’s office CANNOT:

• Explain the meaning of a particular rule
• Give an interpretation of case law
• Explain the result of taking or not taking action in a case
• Tell you whether jurisdiction is proper in a case
• Tell you whether a complaint properly presents a claim
• Provide advice on the best procedure to accomplish a particular goal
• Apply a Rule or Statute
• Explain who should receive proper notice or service

Given the statistics listed above, you may want to consider contacting a qualified bankruptcy lawyer. If you do, and you live in the Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden, Colorado area, please feel free to get in touch with me at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.

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An article in the Washington Post yesterday indicated that many people are going through mandatory pre-bankruptcy credit counseling to avoid foreclosure. One in five people who went through pre-bankruptcy credit counseling were doing so to avoid losing their homes to foreclosure, despite the fact that they cannot eliminate their mortgage payments through bankruptcy, according to Consumer Credit Counseling Services of Greater Atlanta. The Consumer Credit Counseling Services of Greater Atlanta provides counseling throughout the United States.

They advised 50,385 people who planned to file personal bankruptcy during the months of April through June. Each month, slightly over twenty percent of those people sought bankruptcy protection to avoid foreclosure. Once a bankruptcy petition is filed, an automatic stay against efforts to collect debts is created, which includes foreclosures-if only temporarily-according to the American Bankruptcy Institute. If you do not continue to make payments on your mortgage, the foreclosure process can be resumed.

 If you are a strapped homeowner keep in mind that relief from other debts could create enough extra money in the budget to make mortgage payments. That’s something we can evaluate when, and if, you contact me. If you are from the Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden, Colorado area, and have any questions regarding bankruptcy, please feel free to get in touch with me at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.

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Catherine Clifford, a staff writer for CNNMoney.com, stated on Tuesday that the number of consumer bankruptcies spiked in July. According to a report filed by the American Bankruptcy Institute the total personal bankruptcy filings added up to 126,434 which was a 34.3% increase from the same time last year and an 8.7% increase since June. This is the highest monthly number of filings since the Bankruptcy Abuse Prevention and Consumer Protection Act in October of 2005.

“Today’s bankruptcy filing number reflects the sustained and growing financial stress on U.S. households,” said ABI Executive Director Samuel J. Gerdano in a written statement. “Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year.”

The 9.5% unemployment rate is a twenty-six-year high. And the job market doesn’t look like it will improve anytime soon. According to a consensus estimate of analysts polled by Briefing.com the unemployment rate in July should rise to 9.6%.

Incomes have not been increasing for people who do have jobs. A government report released on Tuesday stated that incomes eased 0.1% in June and were level in May, excluding the impact of government stimulus programs. At the same time, spending rose 0.4%.

28.3% of the bankruptcy cases in July were filed under Chapter 13.

If you are from the Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden, Colorado area, and are experiencing economic stress at this time, please contact me for help at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.

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The San Francisco Examiner announced on Friday that sixty-eight-year-old Bjorgolfur Gudmundsson, the second richest man in Iceland’s history, has filed for bankruptcy. He was declared bankrupt on July 31st of this year. It is Iceland’s largest bankruptcy case. The co-founder of Bravo Brewery and former owner of the West Ham soccer club, applied for bankruptcy protection at Reykjavik district court.

Gudmundsson’s son, forty-two-year-old Bjorgolfur Thor Bjorgolfsson, is Iceland’s richest man. Gudmundsson and his son were major shareholders in Iceland’s second largest bank, Landsbanki. The bank failed in October of 2008. Gudmundsson’s holding company, Hansa, has since gone into liquidation. He was not the only one; sixty-six percent of the people involved in Landsbanki have filed for bankruptcy. West Ham soccer club has been taken over by Gudmundsson’s creditors.

He was ranked by Forbes Magazine in March of 2008 as the 1014th-richest person in the world with a net worth of $1.4 billon. In December of the same year they revalued his net worth to zero. He is $759 million in debt.

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