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. 
Will our nation ever go bankrupt? Consider the report from the Congressional Budget Office (CBO). The CBO reports that the national debt is already the highest in history except for World War II, reaching roughly 70% of GDP this year. If things do not change, CBO projects the national debt held by the public will climb to 100% of GDP by 2021, equal to our entire economy. By 2023, it will break the World War II historical record of 109% of GDP. It will then continue to skyrocket to 190% of GDP by 2035, which is higher than the level suffered by Greece when it collapsed into national bankruptcy.
Bankruptcy for a country happens when the federal government can no longer borrow enough in the credit markets to finance its budget deficit. Already this year, 43 cents of every dollar the federal government spends is borrowed. 95% of all the tax money collected goes to Social Security, Medicare, Medicaid, and the income security programs (mostly welfare). After that, there is nothing left to pay even the interest on the national debt, which is equal to 10% of federal revenues. All other federal government expenses, including all of national defense, law enforcement, transportation, agriculture etc comes from borrowed money.
With the federal deficit already at $1.6 trillion, America faces a potentially crippling bankruptcy threat just from another recession in the short term. How high will the deficit then soar, as revenues decline again and spending skyrockets?
By 2013, the top tax rates will be raised under current law, with the ObamaCare tax increases going into effect, and the expiration of the Bush tax cuts. Obama has refused to renew tax cuts for singles making over $200,000 and couples making over $250,000 beyond next year.
The ObamaCare tax increases will mean the top two income tax rates would rise by nearly 20%, the capital gains tax would rise by nearly 60%, the tax on corporate dividends would nearly triple, the death tax would rise from the grave with a 55% top rate, and the Medicare payroll tax rate would increase by 62% on the nation’s small businesses, job creators, and investors.
This is on top of the current corporate tax rate of nearly 40% nationwide on average, counting state corporate tax rates. Even Communist China has a 25% corporate tax rate, with the average in the socialist European Union below even that. Yet, the President continually proposes more tax increases on American companies.
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Filed under Chapter 7 (Tampa) by on Jul 2nd, 2011. Comment.
How Many Americans have filed or Contemplated Bankruptcy
Do you know how many Americans have either filed for bankruptcy or at least thought of doing so? According to a recent survey, nearly 1 in 8 Americans, or 13% of the country have either filed or considered filing for bankruptcy. The FindLaw.com survey found that people between the ages of 35 and 54 are 50% more likely to have considered filing for bankruptcy than people ages 18-34 or 55 and older.
The group least likely to have considered filing for bankruptcy remains people of retirement age (65 and older) at 7%.
The National Bankruptcy Research Center reports more than 1.5 million Americans filed for personal bankruptcy last year, a number that was the highest since 2005. That year was when the latest major bankruptcy law reforms went into effect causing the unusual spike.
But even after the bankruptcy is completed, it can affect you for many years afterwards. Personal bankruptcies are often the result of a major life event, such as loss of a job, a medical emergency, home foreclosure and so on. The Bankruptcy code determines who is eligible to file for personal bankruptcy, which debts can be wiped out, which debts will remain, and what happens to personal property, including homes.
Idaho Woman Sentenced in Bankruptcy Case
Vicki Jean Fehrs, formerly from Mullan, Idaho, but now living in Oregon, was sentenced yesterday in U.S. District Court in Coeur d’Alene for contempt of court. U.S. Attorney Wendy J. Olson announced that this amounted to a misdemeanor, for willfully disobeying a lawful order of a bankruptcy court.
Chief U.S. Magistrate Judge Candy W. Dale sentenced Fehrs to five years’ probation and ordered her to pay $ 47,927.95 in restitution. Fehrs pleaded guilty to the charge. Fehrs filed for Chapter 7 bankruptcy in 2005 in the U.S. Bankruptcy Court in Idaho. But she did not reveal her pre-bankruptcy transfer of a Mullan property to her son.
After receiving a discharge in her bankruptcy case in 2006, Fehrs sold the property and kept the sale proceeds of $47,928, using some of the money to buy a home in Washington state. Fehrs failed to disclose the sale proceeds to the trustee or creditors in her bankruptcy case.
Maietta Construction Company Exits Bankruptcy
Maietta Construction company had its reorganization plan approved by a bankruptcy judge who cleared the South Portland company to emerge from Chapter 11 bankruptcy protection.
The company confirmed that the reorganization plan was approved by a majority of the company’s creditors and post-bankruptcy financing has been obtained.
The bankruptcy became an issue in the special election for the District 7 state Senate race when it was revealed that the IRS had liens on property owned by Louis Maietta, one of the owners of the company, for unpaid payroll taxes. Maietta was the Republican candidate for the Senate seat. He lost last week to Cynthia Dill, a Democrat who had been state representative for Cape Elizabeth, which is part of the district along with South Portland and a section of eastern Scarborough.
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Filed under Chapter 7 (Tampa) by on Jun 3rd, 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.
Two recent opinion polls showed that most Greeks agree that the country’s government has to adopt the austerity measures imposed by the European Union (EU) and International Monetary Fund (IMF) in exchange for bailout funds to avoid national bankruptcy.
The Greek government coffers have no money to meet its obligations largely due to endemic corruption, cumbersome bureaucracy and government largesse. The country is only one week away from defaulting on bonds worth €8.5 billion maturing May 19 for which it does not have the money to pay. Despite widespread violent protests last Wednesday, a majority of the people have begun to realize that they have to bite the bullet if their country is to survive.
In a poll conducted by the Proto Thema newspaper, 54.2% of respondents say they are willing to go along with the austerity measures imposed by the EU-IMF plan rather than see their country go bankrupt. On the other hand, 33.2% of those who responded to the poll feel the government should not accede to getting outside help but should rather go it alone. The poll also shows that 51.4% of the public are reasonable enough to accept that more personal sacrifices have to be made to overcome the economic crisis while only 28% believe that having strikes will solve the problem.
Another poll was conducted by the Sunday edition of the To Vima newspaper. This poll showed similar results in more than half of Greeks (55.2%) feeling that the EU-IMF austerity measures are necessary and they will ‘accept’ or ‘probably accept’ them. 44.6% of respondents in this poll do not accept the EU-IMF conditions. However in contrast to the other poll by Proto Thema, this poll discovered 53.2% of Greeks feel that strikes and protests should continue. However, 63.5% of these respondents do not think that the protests would stop the government from adopting the austerity measures.
In the Proto Thema poll, 1,000 people were asked if they thought the Greek workers unions keep their protests at a ‘rational’ level. A whopping 74% said yes while only 21% replied in the negative. This poll was conducted on behalf of the newspaper by Alco polling agency on May 5 to 7 through telephone calls after violence in Athens by protestors resulted in the deaths of 4 bank employees whose building was set on fire.
On what they thought of their political leaders, the poll showed that 49.4% of the people felt that Prime Minister George Papandreaou has been ‘responsible’ in his job while 39.9% said he was not. In a related result from the other poll by the To Vima newspaper, 71.3% of Greeks think the country’s major political parties should cooperate more to tackle the crisis.
The To Vima survey was conducted by the Kapa Research polling agency interviewing 1,030 respondents on May 6.
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Filed under Chapter 7 (Tampa) by on Jul 29th, 2010. Comment.
