Bankruptcies Continue to Surge in San Antonio
Posted on Apr 13, 2009 11:52am PDT
In San Antonio, Texas, the number of bankruptcy filings is continuing to climb. Last year, several economists and experts predicted that bankruptcy filings would increase in 2009 and to date, their predictions have held true. In the first 3 months of 2009, there were 1,127 bankruptcy filings in San Antonio, which is a 22.5% increase from 2008.
In the month of March, there were 393 new bankruptcy filings compared to March 2008, when 357 petitions were filed in the U.S. Bankruptcy Court for the Western District of Texas. Reports indicate that the majority of the bankruptcies filed were
Chapter 7 liquidations followed by
Chapter 11 reorganizations.
Reports also reveal that filings in the San Antonio-based Western District were also up. The region includes Austin, El Paso, Midland and Waco. In the first quarter of 2009, this Texas region had 3,042 bankruptcy filings. In 2008, that number was much lower at 905 filings.
Throughout the month of March, the totals for bankruptcies filed in major Texas cities were as follow: Dallas - 700 filings, Austin - 305 filings, El Paso - 265 filings, Waco - 146 filings and Midland - 24 filings.
Until recently, San Antonio has been able to combat the effects of the damaged economy. Now, the city seems to be suffering from the lack of employment opportunities and industry shortcomings. Wells Fargo economist, Eugenio J. Aleman, said that, "even highly diversified economies cannot remain above water during the type of environment we are going through today." He predicts that the economy will officially enter into recession this year.
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