Big jump in bankruptcies

With all the attention focused on the big boys (GM, Chrysler, Circuit City, etc.), it's easy to forget that individuals and businesses seek bankruptcy protection too - and in some ways they are more emblematic of the recession. As posted by the OC Register's Jan Norman, L.A. County filings for May jumped 72 percent from a year earlier. OC had a 61.6 percent increase. Nationally, the May numbers were only 37 percent higher than a year earlier. Experts estimate that businesses make up about 18 percent of those filings. Bankruptcy activity tends to be active in California because the state continues to be such an entrepreneurial hotspot. A recession as severe as this one is bound to skew the scorecard (the credit crunch has been a real killer). More bankruptcies also mean less tax revenue being generated, which is a big reason why the state deficit is so high.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing
Previous story: LABO on Twitter

Next story: FREE tickets!

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner

Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook