This page has been archived and commenting is disabled.
US Bankruptcies Surge To 5 Year High, One In A Hundred Nevadans Filed For Bankruptcy In Last Twelve Months
The Administrative Office of the U.S. Courts reports that personal bankruptcy filings for the year ended June 30, 2010 surged to a five year high, hitting 1.57 million, a 20% increase from the prior year. Furthermore, in the period between April and June, there were 422,061 bankruptcy filings, a 9% increase from the 388,148 in the previous quarter, and up 11% from 381,073 a year earlier. As Reuters highlights, quarterly filings surpassed 400,000 for the first
time since a record 667,431 bankruptcies were begun in the fourth
quarter of 2005, when Congress overhauled federal bankruptcy laws and
made it harder for people and businesses to file. Yet while that was an administrative adjustment to bankruptcy law, this time it is all organic, and an indication of the ongoing incapability of America's politicians to fix the economic collapse. Indicatively, Nevada had the highest rate of filings on a per
capita basis in the last year, with 11.74 per 1,000 people, while Alaska
had the fewest, with just 1.58 per 1,000. The states with the most bankruptcies were California (241,975), Florida (107,373), Illinois (80,801), Georgia (77,809), and Ohio (72,924). A full split of all bankruptcies by state and by filing type is presented below.
More from Reuters:
"We know the causes of bankruptcy are principally job losses and health care, with the overlay of the foreclosure crisis," said Deborah Thorne, an associate professor of sociology at Ohio University. "It feels very unsettled, and I'm not surprised the numbers are going up. Until we get our feet on the ground, provide decent-paying jobs, and do something with the housing crisis, bankruptcies will continue to go up."
According to her website, Thorne has co-authored several publications with Elizabeth Warren, a candidate to run the new federal Consumer Financial Protection Bureau.
Last Tuesday, the U.S. Federal Reserve said high unemployment, reflected in July's 9.5 percent rate, as well as modest income growth, falling home prices and tight credit amid a contraction in bank lending were factors contributing to a slowdown in economic growth.
Nevada had the highest rate of filings on a per capita basis in the last year, with 11.74 per 1,000 people, while Alaska had the fewest, with just 1.58 per 1,000.
Among the most populous states, California ranked 7th in per capita filings, while Texas was 48th, New York 41st and Florida 15th.
»
- 8690 reads
- Printer-friendly version
- Send to friend
- advertisements -
1 in 100 Nevadans on 2010?
We need an update when total Bankrupcies reaches the U6 rate.
2012 at this rate?
remind you there is a 1% error on that number :)
So it could be 2% but also 0% :)
"it could be 2% but also 0%"
Or 0.9 to 1.1 out of every 100? I hate math.
This isn't math, it's statistics.
There's lies, damn lies, and statistics. -- Mark Twain
We also might finally have found a statistic due for an upward revision...
Hah...Made me snort!!
I wonder if there is a backlog of bankruptcy filings just like the backlog of home foreclosures...
The short answer is "YES". The new BK laws require credit counseling before the filing occurs. It also requires that BK attornies be paid up front as all funds/monies considered after the filing become property of the Trustee and there is no longer an exception for payment plans for attorneys. Thus not only does one have to save up almost $3000 to file BK, you have to wait in line for your "counseling" session. After that, you have to hope that the I.R.S. waives their privelage to attend the hearing or your BK hearing can be postponed until they have a collections officer familiar with your account to attend. My attorney used to practice BK law until the Joe Biden/Citigroup 2005 BK reform was passed and he is telling me some horror stories about what people are finding out when they get to the hearing. The biggest risk is for assets acquired which they think do not have to be reported on their taxes from years past and the I.R.S. nailing them at the hearings. That and creditors filing objections which are becoming more common.
Good God! Are you referring to a 13 or a 7? Where do you live for garden variety chapter 7 debtors to get charged $3k to file? In my part of the country, a "large" midwestern town (large enough to have pro sports teams), a 7 can usually be done for about $1500, and 13s are done for $3500. We charge $5000 for our 7s, but that's because we only do high net worth individuals and business owners...
If you use an attorney and have a lot of shit involved, prices usually start at $2000 plus filing fees. Garden variety 7's are easy as long as you have 6 months proof of income and expenses and below the IRS maximum living standards for your region.
HUH?! I filed myself and only paid the $250 court fee. And there were no IRS agents anywhere near the court house. Shit, there wasn't even a creditor in any of the hearings. Unless your doing crooked shit like this...
http://www.azcentral.com/ent/celeb/articles/2010/08/17/20100817people-broke-jersey-star-blows-60-grand-what.html
There's nothing to get worked up over.
edit: The law doesn't say you have to pay anyone up front. And you don't have to wait in line for credit counseling!!!! You can do it online!!!!!
Shit I did pre and post counseling online, it was about an hour each (it's actually a class not counseling), then you call on the phone to talk to the counseler for 5 minutes and done!
Stop spreading bullshit dude!
Not bullshit. The new bankruptcy law after 2005 requires credit counseling. The IRS has the right to review and attend all hearings, effective with the new BK laws and can file additonal claims or delay it if they feel you are did some stupid shit like many real estate spinners did over the last 5 years. The new law is tough on individuals, especially in 13's. Chapter 7's require a demonstration of an inability to pay and living standards at or below IRS standards as determined by the BLS and Census. If you filed yourself, congrats. Most individuals would not have a clue as to how to do it, how to deal with the paperwork or the legal traps you can set for yourself by failing to leave creditors and/or collection efforts out of the initial filing. You're a stud. Pat yourself on the back and crow some more. Initially they did not allow online counseling and almost every attorney I know wants to be paid in full upfront and the fees have gone from about $900 on average up to $2000 if they prepare them for you. It is a nice thing to have because under the new laws the attorney accepts some liablity for incorrectly prepared or declared information whereas in the past they did not.
Rarerly do creditors show up unless there are large sums involved. Usually they send in the proper forms to the trustee if they have a challenge to your filing or they feel that you are involved in crooked shit as you said. I'm not spreading bullshit, I'm telling you the average sheeple is not capable of doing this properly. Period. More people fuck themselves over by not following the letter of the law and filing every form properly so believe me, you think it's that easy, go for it. Try a claim with 100 creditors and real estate involved plus investments. Not so fucking easy.
The Nevadans can make it all back in Vegas. They just have to pwn their Rolexes and get an autistic family member to come with them.
Bigger Dickus
Or you can find a band of rather talentless hacks to plan a large casino heist.
I'm in!
1-hire shitty actors
2-get someone to finance 3 progressively worse films
3-???????????
4-PROFIT!
The bank is something more than men, I tell you. It's the monster. Men made it, but they can't control it.
The Grapes of Wrath
Chapter 5
Wasn't aware of other old fossils out there still reading Steinbech. If you haven't seen it, check out the introduction to Log from the Sea of Cortez. You will laugh until your hurt, and it's all still tragicly true today.
Decent paying jobs? You must be joking. We haven't created anything but bubble jobs in the last decade. Salaries are stagnant for a decade. The only jobs the adminstration is supporting builds expensive Chevy Volts. Want a job? Join the Army.
I am surprised that Ohio was number 5.
Nevadans are evil! Evil I tell you!
Deport them! Deport them to.... euh.... CANADA! YEAH!
" and an indication of the ongoing incapability of America's politicians to fix the economic collapse."
You need to assume that has a chance greater than 0.00000000000000000000000000000000000000000000000000000% for that to be news.
All of this just leads to hyperinflation. The more people going bankrupt, the less people there is to tax and service the US debt.
Plan B: Enslavement!
And because I came up with plan B, I'll be the supervisor :)
I for one welcome our new raging-gif-thing overlords.
Don't worry, by law, Uncle Sam gets first dibs on everything, and its debt is never discharged.
filing for bankruptcy protection does not cease your requirement to pay tax... for certain, I think it would be fair to say those filing will not be helping to reflate the credit bubble... but those filing may be in a better position to pick up discretionary spending without the constraints of untenable debt. Just depends on how many file and the condition of the underlying collateral. If it causes enough banks to recognize built in losses (despite our best efforts to keep them secret), then you can force the administration's hand. Just depends on a lot of things... too dynamic to make that statement.
But yes, I think most are in agreement (even though some may not know it) that we're headed for hyperinflationary depression (both the inflation and deflation camps). We simply disagree on the timeline of our demise.
I think he's saying.. whith more people filing BK, means people are making lower wages, lower wages = less tax reciepts, high deficit spending with low tax reciepts... Goods and services side doesn't match money supply side.
kaboom!
Not that filing BK gets you out of taxes...
see my previous post after the first sentence.
THANK GOD FOR ZEROHEDGE!!!
I plan on donating soon. Free Speech has no better friend than this amazing site!
The threads dealing with US/ISRAEL/IRAN and the Middle-East are perhaps tthe best representation of this. Thank you for providing a forum for openended debate on some of these (Economics,War and Policy) most pressing issues of our time!
I disapprove of what you say, but I will defend to the death your right to say it.
As soon as the DOW hits 36.000 :)
obama summer of recovery
ben "the economy is improving" bernanke
he was talking about the weather. And indeed! The weather improved! It yet again got hotter compared to last year!
It even looks like Russia is going to win the race!
Anyone else read between the lines on this earlier today?
More green shoots. Think of all the newly debt free Americans. Add this to the 20 percent of births in the country that are now the product of illegal immigration, and we have what? Maybe Shumpeter's destruction without the creative part.
Illegal immigration could fix the Californian deficit actually
http://usgovinfo.about.com/od/immigrationnaturalizatio/a/caillegals.htm
You just need to find a cheap way to deport them. I propose putting them into C-17's with a 5$ parachute tied on their back and drop them somewhere in the Mexico wilderness.
http://upload.wikimedia.org/wikipedia/commons/2/21/C17.globemaster.arp.jpg
And what happened 5 years ago? Bankruptcy reform was signed into law causing a somewhat artifical spike before year end.
Yep, I was going to make that point. The spike in filings just before the 2005 amendments went into effect was enormous. Everyone who had any possibility of filing bankruptcy in the next several years did it right then, so the intervening years were an artificial low. It's kind of like the Cash for Clunkers effect.
"indication of the ongoing incapability of America's politicians to fix the economic collapse"
I have to disagree here. It's not that politicians can't come up with solutions. It's just that they won't do the right thing.
We now have committed 11 trillion to economic bailouts of banks and other corporations. How about instead we send all the unemployed to state universities or technical schools for 4 years? Or how about we set them up with local goverment jobs with that bailout money so we can have functioning local government?
Hell, pay them to pick up trash. Doesn't matter. It's a better use of the bailout money, IMO.
Of instead of being the lender of last resort, how about the government opens up loans to states, cities, individuals instead of being beholden to the private market which isn't cooperating. Eat their lunch and then we'll see how credit can flow again.
And if no one is willing to do that, at least legalize pot and tax it.
There are solutions, just no heroes willing.
that it so socialist.
the only way is to let it collapse and rebuild just like they did in Asia after their collapse. All the govt spending does is destroy the currency.
duped.
I am for ideas that work. Capitalist, socialist, communist, whatever.
If spending is so bad, we should immediately end both wars and reduce the military budget to 30% of what it is today, and then take that money and work to pay off our debt.
Pragmatism is better than extremism any day of the week.
you're going to get your wish soon. Patience.
take WHAT money? There IS no money. If they could just 'take that money', they would do it and keep fighting wars.
But that's not really part of the game plan. Paying off debt with taxpayer money is just not going to happen, although possibly Bernanke et al believe the economy can be reflated with their fiat policy.
The end result of a fiat paper money scheme is corruption and collapse. It doesn't matter what the spending and taxing structure is.
Just delete the 14th amendment and we're out of the woods. Another thing could be just to raise the retirement ago to 100 years, the 14th amendment doesn't say anything about the retirement age so all would still be well.
Being in Las Vegas, I thought the number reported for NV was low. I know many who are doing strategic defaults, maxing out their credit and then go BK. All the ambulence chaser lawyers have all switched to BK and advertise regularly on TV.
Of course when you are over $200K upside down on your house, the question becomes....just how much is your credit rating worth? Add another $50K in credit card debt, most will sell out their credit rating for $250K.
Deceptive Economic Statistics: While the Economists Lied, The US Economy Died
by: Dr. Paul Craig Roberts
"So, the overestimate of June housing not only made June look good, but also the downward correction of the June number makes July look good, because starts rose above the corrected June number. The same manipulation is likely to happen again next month."
"If the government will lie to you about Iraqi weapons of mass production, Iranian nukes, and 9/11, why won’t they lie to you about the economy?"
"We now have an all-time high of Americans on food stamps, 40.8 million people, about 14% of the population. By next year the government estimates that food stamp dependency will rise to 43 million Americans. So last week Congress cut food stamp benefits. Let them eat cake."
"Wherever one looks — food stamps, home foreclosures, bankrupted states, mounting joblessness — the message to long-suffering Americans from “their government” is the same: go eat cake, while we fight wars for Israel that enrich the military/security complex, and while we bail out banksters whose annual incomes are in the tens of millions of dollars and up."
http://bit.ly/91e3NR
Just thinking when my UI runs out what to do? Here is my vodka state of mind. I will go to Mexico and get a fake ID. Next I will be become the 2nd man in history to become pregnat(don't know how it's done). Now I will smuggle across the boarder and head for Alaska to dump my anchor( don't they pay you just for being there, big oil checks). Presto, I get citizenship as Josea, welfare, oil checks and never have to worry about work! They have a low unemployment rate and never make me work. The only problem is I speak spanglish. Dam vodka is ruining my thought process!
Have another bottle and then apply for a job at the Fed, I reckon. Of course, you'll probably be found to be dangerously overqualified.
Bold plan. Just so we don't get our credit ratings crossed, the name Heysus Bumphuckus has already been taken. Happy trails.
Those fake tits are expensive. No doubt all of the whores and pimps in Las Vegas are bankrupt.
Forgive me if you are from Nevada....but finally, some justice for keeping Harry Reid in office so that he could inflict pain of the rest of the nation. What goes around, comes around. Ahh, venting felt good. : )
What about the other 99 out of a hundred that didn't?