2009 brought us increased bankruptcy filings. The number of filings approached the levels of 2004. 2009 saw 1.4 million consumer filings. Approximately 71% of the filings were Chapter 7’s and 28% were Chapter 13’s. Less than 1% were Chapter 11 filings. The first two months of 2010 has seen a continuation in the increased number of cases. According to the American Bankruptcy Institute, over 111,000 filings were made in February. That represented a 14% increase over February of 2009. It also represented an increase of over 9,000 filings from January 2010. March may well be a signal of what we can expect during the rest of the year.
2009’s statistics continue to show the trend where the majority of Bankruptcy cases are being filed. The 9th circuit, which includes California, Arizona and Nevada, saw 324,000 filings. The 6th Circuit, which includes Ohio and Michigan, was second with close to 214,000 consumer filings. The 11th Circuit, which includes Florida and Georgia, was third, with 198,000 filings. When looking at specific states, California led the way, followed by Florida, Ohio and Michigan. These are the states that are seeing the highest number of foreclosure filings. Of the 50 United States, Alaska had the fewest followed by Wyoming.
As the number of foreclosures increase, so should the number of bankruptcies. WWR will continue to monitor the trends and keep you updated as to the status of filings across the country.
If you have any questions, please contact Alan C. Hochheiser, Esq. Alan is the managing partner of the Bankruptcy Practice Group and is located in the Brooklyn Heights office of Weltman, Weinberg & Reis Co., L.P.A. He can be reached at 216.739.5649 or via email at ahochheiser@weltman.com.
This year in the United States we have seen Bankruptcy filings increase almost 34% from 2008. However, some good news may be on the horizon in some jurisdictions. After posting a 65% increase in September of 2009, compared to case files in September of 2008, the Northern District of Ohio saw a decrease in October. In October 2009, bankruptcy filings decreased by 1% as compared to October of 2008. One month does not make a trend but we may be seeing some stabilization in this jurisdiction.
In addition, some reports have indicated that there has been a slow down in the number of commercial bankruptcies filed nationally. Some are attributing this to the slowdown in commercial lending. The number of large Chapter 11 cases has slowed as well.
The rest of the year will be a sign of what is to occur in 2010. Weltman, Weinberg and Reis will continue to monitor the latest bankruptcy trends and its potential effect on creditors.
The number of Bankruptcy filings through the first half of the year has increased almost 37%. Business bankruptcy filings have increased in the first six months almost 110%. Over 1.5 million bankruptcies being filed this year could be a reality. Things are also heating up again in Congress. The proposed cram down legislation, which was put on hold, is once again starting to gain some momentum.
As the unemployment rate, the number of foreclosures and the overall cost of living continue to rise, the number of bankruptcy cases will as well. There could be new legislation or case interpretations, and Creditors need to be aware of the ever-changing playing field. Through our Trendline articles as well as our Bankruptcy Blog, which is updated regularly at http://wwrbankruptcy.com, the Bankruptcy Team at WWR will keep you updated and provide strategies that allow our clients to be in a position to best handle their bankrupt portfolios and mitigate their losses.
As children all over the country will be going back to school, they wonder what the new school year will bring. From a Creditor standpoint, we know what we will be facing … a challenge. We will be dealing with an increased number of bankruptcy cases.
With the current state of the economy and massive job layoffs, the number of Bankruptcy filings in the U.S. has surged. The Associated Press reported that over the last 12 months, there have been over 1.2 million bankruptcy proceedings filed. In March of 2009, there was an increase of 46% on the number of filings from March 2008. The largest percentage of increases in filings is from the Western portion of the United States: Arizona, California, Idaho and Nevada leading the way.
Many experts are predicting that this is just the start of the surge. Some early projections are for 1.5 million bankruptcies to be filed in 2009. This is despite the fact that the Bankruptcy Cramdown Legislation may have reached a roadblock in the Senate. Many experts also believe the increase will continue into 2010.
It will be a challenging time for both financial intuitions and debtors. Weltman, Weinberg & Reis will continue to keep you updated on Bankruptcy trends in order to allow creditors to be in a position to protect their interests in the current environment.
The bankruptcy team at WWR is committed to helping you thrive in these ever changing times. With the potential for new bankruptcy legislation, we think now more than ever our continued partnership with clients and others is vital.
Our team is introducing a weblog to help facilitate the sharing of information regarding the upcoming bankruptcy legislation. In addition, we will be highlighting changes we see in the processing of the court procedures as well as different features in the proposed legislation that may directly affect you and your company. We will be commenting on the possible interpretations the courts may give to the statutes as well as how they could affect your business and what options may exist to deal with them. We will be ready to update you on any breaking news.
We invite you to partner with WWR in this blog by reading and sharing with us your questions, concerns and observations in each article’s comment section or our Contact page. WWR feels strongly that we can help you navigate through these challenging times so please join us at wwrbankruptcy.com.
