California Metro Areas Lead Nation in Small Businesses Filing Bankruptcy

Of the top 15 statistical areas for small businesses filing bankruptcy, six are in California.

A recent report from Equifax shows that California continues to lead the nation when it comes to small businesses having to file bankruptcy.

Through its research, Equifax compared the first quarters of 2009 with the same time period this year. What it found was that of the top 15 metropolitan statistical areas that saw the highest number of small businesses filing bankruptcy, six were in California.

Those include areas like Lose Angeles-Long Beach-Glendale, Riverside-San Bernardino-Ontario, and Sacramento-Arden-Arcade-Roseville. Those three MSAs saw the highest number of businesses filing bankruptcy in the country.

Businesses in California aren't alone, as many consumers and government organizations are facing the prospect of having to file bankruptcy because of waning incomes or increased debts.

Still, smaller companies across the country are facing trouble, according to the firm.

"This trend is striking as it reveals that small businesses in all regions continue to experience the impact of today's economic conditions," said Reza Barazesh, vice president of Equifax Commercial Information Solutions.