San Francisco Bankruptcy Attorney offers insight into the drop in bankruptcy filings in the third quarter.
San Francisco Bankruptcy Attorney offers insight into the drop in bankruptcy filings in the third quarter.
According to Automated Access to Court Electronic Records, an Oklahoma City bankruptcy management and data company, the number of business bankruptcy filings fell 4.5% in the third quarter of 2009. This is the first month-to-month decline in the number of filings since November-December of 2006.
However the number of Chapter 7 and Chapter 13 consumer bankruptcy filings rose 2%, continuing a string of increases in the number of filings. Since the enactment of the 2005 Bankruptcy reform laws, there had been 15 consecutive quarterly increases in the number of bankruptcy filings nationwide. While the number of consumer bankruptcy filings did rise, the 2% gain was significantly smaller than the 15.4% increase between the first and second quarters of 2009. The slowing of the increase, coupled with rising home mortgage applications and a reduction in the new jobless benefit claims offers some hope that the worst of the economic downturn may be behind us and that the economy is beginning to rebound.
California had the third-highest year-over-year increase in per capita filings, behind Nevada and Arizona. Arizona had the largest average filings per month increase with a 72% rise year-to year.
Some analysts believe that the 2006 and 2007 bankruptcy filings were artificially low because many people rushed to file in advance of the 2005 bankruptcy reform law changes. That rush to file took many applicants who may have delayed their filings and put them into the bankruptcy process under the old rules.
Bankruptcy filings drop, giving hope of recovering economy, McClatchyDC.com
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