Not the nicest news to receive on Thanksgiving Weekend, perhaps, but new data released this week indicates that bankruptcies nationwide spiked 33 percent in the third quarter of this year. California bankruptcies remain a significant part of the problem, as the state remains one of the nation's leaders in this area, an unhappy reality for anyone facing a Bay Area foreclosure.
According to media reports, the American Bankruptcy Institute released data yesterday indicating that 388,485 there were bankruptcy filings between July 1 and September 30, up from 292,291 in the same period last year. "The spike in bankruptcy filings for both consumers and businesses reflect the continuing effects of today's weak economy," said ABI executive director Samuel Gerdano, according to CNN.
According to an analysis by the Reuter News Agency, approximately 71 percent of the third-quarter filings were made under Chapter 7 of the US bankruptcy code and 28 percent under chapter 13. Most of the remainder of the filings used chapter 11. Nevada led the nation in filings per capita with California ranked 13th.
In troubled and unsettled times such as these it is more important than ever to develop a relationship with a full-service Oakland, Walnut Creek and San Francisco bankruptcy law firm. Early consultation with a Bay Area bankruptcy attorney can help avoid worse problems in the future. If the attorney can help arrange a California loan modification it may be possible to avoid bankruptcy entirely.
Reuters: U.S. bankruptcies rise 33 percent in third quarter
CNNMoney: Bankruptcies spike 33%
