1.4 Million Bankruptcy Claims expected in 2008
Another sign of the bad economic times: The American Bankruptcy institute said that the number of Bankruptcy files this year could reach 1.4 million.
What is worst is that most of the people are filing a chapter 7 bankruptcy, which is also known as a liquidation bankruptcy. When a business owners files a chapter 7 bankruptcy file, means that he is flat broke , and there is no payment plan or restructure of the business, all assets must be sold to pay creditors.
Business owners are blaming mostly the high oil prices and the real estate foreclosure crisis. With the high oil prices they were forced to increase their prices, and with the real estate crisis people are buying less. Paying more and with less buyers businesses owners are being forced to close their doors.