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 .