In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Saturday, April 04, 2009

Bankrupt Brits

by Calculated Risk on 4/04/2009 09:59:00 PM

From The Times: Bankrupt Britain: 340 people go bust every day

Begbies Traynor, the insolvency and restructuring group, reckons more than 35,000 firms could go under this year – equivalent to more than 95 a day. The figure would be 18% higher than during the previous peak in the 1990s crash. Nick Hood at Begbies said he would not be surprised if the number rose to 40,000 by the end of the year.

Begbies forecasts that as many as 125,000 people will go bust this year – well above the 107,000 peak in 2006 – equivalent to 342 people a day.
In America an average 5,945 bankruptcies were filed each day last month by troubled consumers – the highest level since October 2005.
The Q1 bankruptcy stats for the U.S. will be very ugly. There was a spike in bankruptcy filings in the U.S. in 2005 prior to the new bankruptcy law taking effect - the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Over 2 million bankruptcies were filed in 2005 - and that is a tough record to beat, but I wouldn't be surprised if 2009 is the 2nd worst year ever in the U.S.

Cartoon Eric G. Lewis

Click on cartoon for larger image in new window.

Repeat of a great cartoon from Eric G. Lewis, a freelance cartoonist living in Orange County, CA.