Law Offices of Chance M. McGhee

Call Today for a FREE Consultation


Small Business Bankruptcy Threatens San Antonio’s Future

September 5th, 2013 at 1:10 pm

With the economy firmly in recovery, it may seem for residents of San Antonio that it’s all clear ahead. Indeed, CNN Money Magazine lists San Antonio as one of the top ten booming cities in the country. According to CNN, “those who move here from other parts of the country often find their income stretches much further in San Antonio… it’s 57 percent less expensive to live there than in Manhattan, 29 percent less than in Los Angeles, and 18 percent cheaper than in Chicago.” This translates to some big savings—especially when it comes to housing. Now that the Great Recession has done its worst to the housing market, houses in San Antonio are some of the cheapest in the nation. According to CNN, the median price for a single-family home in San Antonio was $167,000 in 2013, “well below the $184,000 national median.” This means that the city is prime stomping grounds for new entrepreneurs and start-ups. Even CNN reports “San Antonio is a blue collar town that is attracting a lot of cutting edge companies.”

And yet scarily enough, it’s exactly those cutting edge companies and their oftentimes young, otherwise uninitiated employees that need to be on edge about bankruptcy. According to Dallas News, bankruptcies, both corporate and personal, are way down in Texas. Much of this is due to “low interest rates and a stingy market credit,” reports Dallas News. And yet there’s a fear that “hundreds of Texas business would have benefited from Chapter 11 protections from reorganization and restructuring, but Federal Reserve policy has significantly impeded those avenues.”

This is what makes the situation something about which to be aware. With an influx of new entrepreneurs calling San Antonio home, the bottom has the potential to drop out if fears speculated upon in the Dallas News come true.  “At some point,” one lawyer told Dallas News, “there will be enough distressed debt that this ‘extend and pretend’ philosophy will no longer work.”

If your small business seems headed down this road, it’s important to seek the counsel of a qualified bankruptcy attorney sooner rather than later. Contact an experienced San Antonio bankruptcy lawyer today.

Call today for a FREE Consultation


Facebook Blog
Back to Top Back to Top