Getting Better or Worse?

Corporate downsizing continues by cutting hours or staff. Bankruptcy’s increasing; especially those converting Ch 11 to 7 which do not show as a new filing (thereby understating the numbers).


I can't help but wonder if the economy is getting better or continuing to drift downward. Many of my clients are in desperate need of cash flow. Many have filed Chapter 11 to reorganize but cannot survive even with court protection. They have no choice but to convert to a Chapter 7 (liquation) but are having a challenge paying the fees and costs to shut down. So there are running away in the middle of the night……

It may be another two year or more before we see any significant signs of recovery. If this is the case it will be a very long two years!

Good luck to all of you struggling to keep your heads above water!

Reg Baker, CPA