Bankruptcy Boutique: It's the Credit, Stupid*

The recession is killing businesses (and eating jobs) left and right, but a local bankruptcy lawyer says the problems he’s seeing are due less to the general downturn than to the specific lack of credit.

A year and a half ago, CalLaw profiled San Francisco bankruptcy attorney Merle Meyers who was opening his own boutique, and even looking to hire, in the middle of a rosy economy that was heaping misery on bankruptcy specialists nationwide.

Now his shop boasts five very busy attorneys representing debtors in Chapter 11 bankruptcies, and he says the primary issue for his clients is not a bad business climate, but the impossibility of finding credit. So he has ground-level advice for the politicians looking to save the economy.

“If there’s something they do in Washington to ease the credit crunch, that would have a much earlier impact than an economic stimulus that creates jobs,” Meyers said.

— Petra Pasternak

* Not that Meyers called anyone stupid. Our headline writers just like to get cute.

Comments

[Veris, LLP]

Limitless credit can make most anything a going concern. What type of credit is no longer available to these clients, short term debt to meet orders or something else?

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[Observer]

Reducing waste is always good. But it isn't enough. We have been starving our public sector for decades, by not taxing the appreciation of commercial property, via the excesses of Prop. 13.

Tax protection for homeowners, yes. Tax protection for commercial developers -- a boondoggle, at the expense of the rest of us.

[Jrlaw Org]

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