In a recent report, the Administrative Office for the US Courts said that the bankruptcy rate has fallen by 8% between October 1, 2010 and September 30, 2011. Indiana State also saw a drop in bankruptcies year on year for the fiscal year ending September 30.
There were 1,467,221 bankruptcy filings throughout the country in the latest year compared to the 1,596,355 million filed the year before. This year, there were 10% less Chapter 7 filings and 4% less Chapter 13 filings whereas Chapter 11 filings fell by a significant 16%. In the latest report on the fiscal fourth quarter, the number of bankruptcy filings fell by 15% compared to the same period last year.
Chapter 7 bankruptcy is where the debtor liquidates all disposable assets to pay off debts while Chapter 13 bankruptcy is a court approved payment plan for individuals to pay off their debts over a period of up to 5 years. And chapter 11 bankruptcy is for businesses to reorganize their finances to repay their debts.
In the state of Indiana, a total of 48,438 bankruptcies were filed last year in the fiscal year ending September 30. This included 983 business bankruptcies. But this year during the same period, the number of bankruptcies came up to 41,199 bankruptcies, including 775 business bankruptcies. The lower number of business bankruptcies is largely due to the fact that banks are now more willing to give time to businesses to pay up their debts rather than initiate bankruptcy proceedings.
The 7th Circuit Court of Appeals, which includes Indiana, Illinois and Wisconsin, said there was a 10% drop in bankruptcy filings overall according to official figures. Last year, there were a total of 161,182 bankruptcy filings compared to 145,018 in the most recent year.
The Northern District of Indiana’s bankruptcy filings fell by 15.7%, from 19,538 to 16,477. Out of these, the number of Chapter 7 filings declined by 16%, while the Chapter 13 filings fell by 13.4%. There was also good news for the Southern District where overall filings went down by 14.5%, to 24,727 from 28,905 a year ago. Chapter 7 bankruptcy filings also fell by 13.8% while Chapter 13 filings declined by 15.5%.
As a result of these improved figures, Indiana’s national bankruptcy rating also improved to seventh in the number of overall filings in the most recent year, compared to fourth the year before. At the same time, Indiana also rose from third to sixth in Chapter 7 filings and dropped from 10th to 11th in Chapter 13 filings.
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Filed under Chapter 7 (Tampa) by on Nov 14th, 2011. Comment. 
Wisconsin state’s number of bankruptcy filings has fallen by 9.5% this year. But analysts say they are not jumping for joy yet, at least not until the jobless rate in the state falls significantly. The number of bankruptcy cases in US bankruptcy court in Wisconsin fell to 21,167 year on year, mostly coming from Chapter 7 bankruptcies, according to records.
According to figures from the American Bankruptcy Institute (ABI), the trend in Wisconsin follows that of the nation as a whole. Bankruptcy filings fell by about 10% nationally through the first three quarters of this year to a little more than 1 million.
Economists concur that the downward trend of bankruptcy filings comes just after the worst of the economy which happened about two years ago. Commenting on the national decrease in bankruptcy rate, Jay Mueller, a portfolio manager for Wells Fargo Advantage Funds in Menomonee Falls said, “I don’t think there is a lot to read into it other than to say there is a lag effect between a bad economy and bankruptcy filings.”
However, the number of bankruptcies among certain classes of consumers has not decreased in some states. For one thing, the number of small business owners filing for bankruptcy has not fallen. This has been the case in Milwaukee, for instance.
Small business owners selling specialized services and small luxury items seem to have continued to file for bankruptcy. Demand for specialized services such as repairing hydraulic pumps in off road vehicles and small luxury items that are not necessities like costume jewelry, flowers or boutique clothing appear to have drastically fallen. This has propped up bankruptcy figures among these classes of consumers.
Furthermore, filing for bankruptcy has become more socially acceptable and less of a stigma these days simply because so many people have done it. This has also prompted a continuous flow of bankruptcy filings.
Whether you are a business owner or a wage earner, bankruptcy may be your answer to starting afresh financially. Bankruptcy is your right and can offer you protection from your creditors and elimination of certain debts. If you are contemplating filing for bankruptcy, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Oct 20th, 2011. Comment.
Unlike the rest of the country, Utah has seen an increase in bankruptcy filings the first nine months of this year. Overall, the nation has had a 10% decrease in bankruptcy filings but in Utah, the number has increased by 7%. According to Samuel Gerdano, executive director of the American Bankruptcy Institute, “The trend of declining filings [nationally] has been consistent with consumers continuing to rein in their spending, household debt, and an overall pullback in consumer credit.”
On the other hand, the bankruptcy court revealed that in Utah, the state’s 7% increase continues the trend in the state over the last 5 years. Ironically, this may have something to do with the state’s own economic success.
Utah’s unemployment rate is about 7.6%, significantly less than the above 9% nationwide. This may have let to less than frugal ways among the Utahans compared to consumers in other states who have been tightening their belts. According to US Bankruptcy Court in Utah 14,552 Utahans filed for bankruptcy protection during the first nine months of this year, an increase of 981 applicants from the 13,571 who filed for bankruptcy during the same period last year.
In offering an explanation for the disparate bankruptcy trends nationally and that of Utah’s, visiting professor at the American Bankruptcy Institute, John Kilborn said, “What you’ll often see is that more people will file for bankruptcy if they think the economy is improving. And it could be that some consumers in Utah see the economy a little different than elsewhere.” Kilborn stated that the reason for the bankruptcy increase during a perceived upturn in the economy is that people want to take advantage of the turnaround by eliminating their debts.
Another contributing factor could be the rate of foreclosure in the state. In other states there has been such a huge backlog of foreclosure cases in the courts that the debtors are still allowed to stay in their homes even while their cases are in court. But in Utah, the backlog is minimal, which tends to contribute towards the higher rate of bankruptcy.
33% of the 14,552 bankruptcy filings in Utah through the first nine months of this year were for Chapter 13 bankruptcy which allows debtors to repay their debts following a court-approved payment plan. The remaining 67% of the filings were for Chapter 7 bankruptcy, commonly called liquidation bankruptcy.
If you are going through financial distress, bankruptcy may be the answer to your financial problems. Bankruptcy can mean a fresh start for you and your family financially. If you wish to have a discussion with a licensed bankruptcy attorney, give us a call at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Oct 19th, 2011. Comment.
The national bankruptcy rate rose 14% for the first 6 months of 2010, the highest since landmark legislation was enforced to curb abuse in bankruptcy cases in 2005. According to the American Bankruptcy Institute (ABI), the number of filings rose to 770,117, the highest year-on-year since the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) came into being aimed at reducing the number of Chapter 7 bankruptcies where debts can be wiped out without paying them.
However, month-on-month, the June statistics indicate a glimmer of hope. It is the third consecutive month where the bankruptcy rate has fallen. The number of bankruptcy filings in June came up to 127,000, down more than 7% compared to May. But this number is higher compared to June 2009 by more than 8%, according to the National Bankruptcy Research Center. The ABI expects another 1.6 million individuals and companies to file for bankruptcy before the year is out, according to its Executive Director, Samuel J. Gerdano.
Statistics in a report by Professor Ronald Mann of the Columbia Law School in Alaska show that among the states, Nevada recorded the highest bankruptcy filing rate of 16,000 filings for each one million households (this is more than double the national average of 6,800 filings per million) whereas South Carolina and Washington D.C. came in the least with less than 40% of the national average. The regions most hard hit by bankruptcies are the South East and South West of the country. While most states have increased in the number of bankruptcy filings, Tennessee and Alabama and some other Southern states have shown lower filings.
Even some people in public office have not been spared. Part-time mayor for Layton, a city of 67,000 residents, filed for bankruptcy in March this year after winning the election to a second term in November 2009. Steve Curtis, mayor of Layton, the largest city in Davis county, Utah lost his job due to downsizing. Curtis said that bankruptcy was something he tried very hard to avoid as it was something he felt was distasteful.
Yet Curtis intends to fulfill his duties as mayor as he had not broken any law and should not have to resign. Curtis added that he was very humbled to receive the support of many residents facing the same experience due to layoffs. He receives an annual salary of $21,800 and a monthly travel allowance of $800. In addition, he also receives a small stipend as a director of Wasatch Integrated Waste Management district that encompasses Layton’s landfill and burn plant.
No one is exempted from the effects of the economic crisis. It has driven countless people into debt. If you have been drowning in debt, consider bankruptcy as a way out. Many may not realize that bankruptcy actually protects you from your creditors and gives you the chance to discharge your debts. Call us at (813) 200 4133 for a free consultation or visit http://tampabankruptcy.pro.
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Filed under Chapter 7 (Tampa) by on Sep 5th, 2010. Comment.
