A real estate agent. A dry cleaner. An ice cream shop. A pizza joint. A major building industry subcontractor. A well-known clothier. Those are just some of the local businesses that have spoken with Sarasota attorney Amy C. Boohaker about the possibility of filing for bankruptcy.

“I am seeing an uptick in business filings,” she says. “They are in the construction, mortgage, real estate and retail markets. The economy is definitely playing a major role in the filings. These businesses do not have the income coming in that they used to. If they have employees, they are laying them off and decreasing overhead either because they are trying to survive or because they are shutting the business down.”

Boohaker is also meeting with a lot of sole proprietors, people like handymen, sheet rock and metal workers, and brick layers. And not surprisingly, meetings with real estate investors, some inexperienced, others more seasoned, are also filling her schedule. “They’re upside down on everything or almost everything and can’t pay multiple notes, can’t rent, can’t sell, and can’t afford to pay the huge deficiencies that are accruing,” she says.

Sherry F. Ellis, a bankruptcy attorney with offices in Venice and Sarasota, has been seeing an increase as well and is predicting even more. “I’m doing a ton of business bankruptcies—cabinetmakers, contractors, masonry workers, pool people, even title companies and appraisers,” she says. “And I think we’ll see more businesses file. A lot have just been hanging on, hoping for season. So if season doesn’t pull them out we’ll see a lot of people in March and April.”

In 2006, more than 15,000 bankruptcy cases—both business and personal—were filed at the United States Bankruptcy Court for the Middle District of Florida, one of the busiest bankruptcy courts in the country, which serves 35 Florida counties, including Manatee and Sarasota, and cities like Jacksonville, Orlando, Tampa and Fort Myers. This year, 13,752 cases had already been filed as of July, compared with 8,058 during the same time period last year.

And the Middle District of Florida is not the only place seeing an increase in activity. According to data released by the Administrative Office of the U.S. Courts, the total number of U.S. bankruptcies filed during the first six months of 2007 increased 48 percent over the same period in 2006 in all bankruptcy court districts. There were 404,090 bankruptcy filings during the first half of 2007 (January 1 to June 30), compared to 272,604 filings over the same period in 2006.

The Greater Sarasota Chamber of Commerce doesn’t keep track of local bankruptcy filings, but the staff knows its members are hurting.

“We have experienced some dropping off in membership that we know is due to the economy,” says Virginia Ray, manager of membership development and sales for the Greater Sarasota Chamber of Commerce. Between October 2006 and September 2007, 599 businesses dropped out of the Chamber. Of those, 55 said their reason for leaving the Chamber was due to going out of business. According to Ray, that figure is up 10 or 15 percent over previous years, but the Chamber has no further information as to how or why the businesses shut their doors or if they’ve filed for bankruptcy. The Chamber remained at about 2,400 members, however, since other companies have joined. Manatee Chamber membership has grown slightly; 2,403 in December 2006, and 2,435 in mid-September 2007.

Local bankruptcy attorneys agree the real estate meltdown is playing a large role in business bankruptcy filings, but businesses also file for bankruptcy for other reasons, such as poor management, a failure to properly size up the competition, or a product that no longer holds interest to consumers. “For example, as people become more health conscious, certain types of fast food businesses have a harder time surviving in the marketplace, especially those that are over-franchised,” says R. John Cole II, a Sarasota attorney who specializes in bankruptcy and divorce cases. He also points out that for many small businesses, such as home décor shops, the prices they need to sell items at in order to turn a profit often become too high for them to compete with the chains.

In general, business bankruptcy filings tend to make up a small percentage of overall bankruptcy filings. For example, in the state of Florida in 2006, there were 24,709 non-business bankruptcy filings and 991 business filings, or less than 4 percent of total filings.

Traditionally non-business or individual bankruptcies are caused by the loss of a job, loss of health, or loss of a spouse. But in the last two years, real estate losses have become a major factor.