As we move forward in 2008 that number is already rising. Due to the housing market turmoil and increasing consumer debt many more people are filing for bankruptcy last year and now this year.
The American Bankruptcy Institute said total consumer filings rose to 801,840 in 2007 from 573,203 in 2006.
The heavy consumer debt load is not getting any better and with the home mortgage crisis, many more will file for bankruptcy in 2008.
Make sure your business is protected by going over all of your accounts that you extend credit to, make sure they are still in good standing, and up to date on all payments. Now is a good time, if you haven’t already, to review anyone who has credit with your company and make sure nothing has changed. You should check each customers credit and verify that the credit limit they have is in line with their recent credit history.
Check for things such as late or slow payments, lesser purchases, job loss, divorce and returned mail or phones being disconnected. Many times when the economy suffers, people lose their jobs and their marriage suffers, all of these things are factors that lead up to bills not being paid and can end in bankruptcy.
Protect yourself and your business while there is still some time.
» Credit Crisis Continues to Take Heavy Toll from BizCreditPolicy
The end of 2007 brought with it bad debts and foreclosures that will continue through this year. Even though there were signs of a credit crisis looming, the crunch came on quickly as people across the country began defaulting... [Read More]
Tracked on: January 9, 2008 2:19 PM | Permalink to Trackback