The fall of the housing market and the credit crunch impacted the entire housing industry including home builders, developers, contractors, material companies, real estate professionals, mortgage professionals, real estate attorneys. This is in addition to the many companies hit by the shrinking economy, and the inability of consumers to access credit, purchase homes, new cars, credit cards, and more.

As a result, many companies are resorting to laying off employees in the hope of balancing their liquidity. When that is not enough, many have turned to the bankruptcy courts. Several major retailers in the last 6 months have filed for bankruptcy protection, including Linens and Things and Circuit City.

A majority of households are unprepared for the financial decline, do not have sufficient savings, and are in financial distress as a result. Those who were fortunate enough to prepare for potential financial “rainy days” watched as their stock portfolios and 401K accounts disintegrated.