The saying “The times they are a-changing” may be true, but I must tell you that, from my standpoint as a longtime debt consolidation lawyer offering small business bankruptcy help in Indiana, some things never seem to change.
As I wrote in an October 2009 Bankruptcy in Indiana article, “Whether a big business succeeds or gets into trouble can mean the difference in the survival or failure of many small businesses.
Now, three years later, the New York Times is writing a feature about the Bronx Parking Development Company defaulting on $240 million of its bonds. What caused the problems for the company? The Yankees not making the World Series. “This year, the parking lots have been 43% full on average during games and other events at Yankee Stadium,” say the owners of Bronx Parking. “If new revenue is not found and costs are not cut in the coming months, the company could go bankrupt.”
Every small business bankruptcy attorney in Indiana knows the term “the ripple effect,” in which what happens in one business has widespread effects on other businesses and individuals. For example, a new subway station had opened in 2009, which severely affected the parking lots, because now people could ride the train and walk to the Yankees’ games. Nearly 4,300 fans took the train to the weekend games rather than drive their cars, that new train stop had not been included in the company’s original forecasts. So the story of Bronx Parking brings out another important lesson about bankruptcy – often it is factors beyond the business owners’ control that cause financial troubles, rather than any irresponsibility or mistakes on the part of the business owners.
In the same way, as one of the Anderson bankruptcy lawyers points out, when it comes to personal bankruptcy in Indiana, the reality is, many people who have been responsibly handling their money for years are hit by an extended illness or a layoff that destroyed all their carefully-laid plans. Now they've got creditors making their lives miserable, and they themselves are letting negative self-talk and blame make the “ripple effect” in their own lives even worse.
With the ripple effect, things often begin when big businesses have problems, and next thing, small businesses have problems, and then people have problems – that whole “series” can lead to bankruptcy in Indiana!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg