Bankruptcy filings topped the one million mark for the first time since most of the Bankruptcy Abuse Prevention and Consumer Protection Act BAPCPA) went into effect October 17, 2005. That is a whopping 30% increase across the nation! Kansas filings increased almost 12% during the same time period.
The Administrative Office for the U.S. Courts statistics show 1,042,993 bankruptcy cases were filed for the fiscal year ending September 30, 2008. Kansas cases totaled 8,642. About 3% of the Kansas filings had predominantly business debts.
Compare that with Colorado which had a 38% increase in filings at 13,856 cases and the Western District of Missouri which had a 21% increase in filings at 12,407 cases.
Kansas cases were 67% (5814) chapter 7 liquidation cases and 43% (2784) chapter 13 adjustment of debts for individuals. There were 31 chapter 11 business cases and thirteen chapter 12 cases for family farmers in Kansas.
The AOUSC’s release is available here. Filings increased almost everywhere due to job losses, stepped up collection efforts and erosion of home values, according to New York bankruptcy lawyer Jay Fleischman. Six judicial districts reported less cases filed, while all other districts reported increases up to 55% in bankruptcy filings.
About Jill Michaux
