[WSJ] Small Business Bankruptcies Rising at Worst Pace Since Pandemic

My takeaway here is that more small businesses need to start blaming their problems on shrink (instead of poor business decisions) like the big guys.

Edit: I also just noticed they’re saying “worst pace since pandemic.” Since the COVID PHE (Public health emergency) was declared over on 5/11/23… I guess it’s at the worst pace in the past 5 months? Well done, WSJ.

I would liken this to what has taken place on Amazon due to all the TikTok/YouTube easy money messages.

During the COVID nonsense with all the shutdowns, etc. there was a tremendous surge in business startups by people who were totally unprepared to start or run a real business.

It’s no surprise at all given the huge numbers involved that they would now be filing bankruptcy. Add that to the ‘new improved’ Subchapter V that is mentioned and this was pretty much a foregone conclusion.

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Who’s at fault here??? :arrow_double_up: :arrow_double_up: :arrow_double_up:

I’m gonna get in trouble for this one…

:laughing: :sob:

Does that include stay at home mom who started an llc and sources items from dollar tree and Costco to sell on Amazon?

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Do businesses like that really file for bankruptcy? I don’t think so but who knows.

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I mean they might to try and get out of the $36k credit card bill.

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Oh My… Imagine leveraging credit cards doing something like that? Yikes…

What are CC interest rates these days? 22% or something like that I think. Thankfully, I think I held over a balance on a CC once in my life for a couple months when I bought my house and had to furnish it and couldn’t pay it off.

Yup, suppose it could happen.

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We’ve seen way more then one post on the osfe saying they were thousands in cc debt. I cringed every time I saw it.

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I often used 0% APR credit card promotional rates to smooth over cash flow problems.

I could have bought a house with all of the 0% credit card rates I was given. I fooled them, those rates are supposed to be reserved for people who do not need credit.

I get them far less often than I used to, and my credit score is now really high. They must be reserving those for people who are likely to get a late payment penalty. The penalties are worse than the rates which are now as high as 28%/month.

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From the article:

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