Phoenix, AZ – The 4th quarter of 2007 continued the steady up trend in the bankruptcy markets, according to a press release from www.OnlineBKmanager.com. Chapter 7 filings amplified and represented 72 percent of all personal cases being handled by the United States Bankruptcy courts. Personal Bankruptcies increased 41 percent over the 4th quarter of 2006 with 326,749 households either filling or discharging.

“There’s obviously an impact from the down turn in the housing market, subprime-loan problems and the increase in foreclosures,” said Chris Bayley, a partner focusing on bankruptcies at the Phoenix law firm Snell & Wilmer. The 2007 increase “presages even higher filings this year, as the heavy consumer-debt load is made worse by the home-mortgage crisis,” predicted Samuel Gerdano, executive director of the American Bankruptcy Institute.

As of January 16th, there were a total of 875,899 open bankruptcies being processed for discharge by the United States Bankruptcy courts. What does all of this mean to the Automotive Special Finance Professional? “Its simple,” said Robert Davies, President of www.OnlineBKmanager.com. “37 percent of bankrupt individuals purchase an automobile within 30 days of discharge and a grand total of 70 percent purchase within a year of that discharge. This suggests a substantial increase in sales for dealerships marketing to the discharged BK market in 2008,” concluded Davies.

Bankruptcies Awaiting Discharge by State

Alabama38,686

Alaska584

Arizona8,462

Arkansas 18,005

California 52,375

Colorado 9,338

Connecticut3,183

Delaware2,418

Washington DC562

Florida35,890

Georgia75,040

Hawaii 1,064

Idaho2,727

Illinois40,445

Indiana29,111

Iowa3,494

Kansas9,114

Kentucky 15,601

Louisiana21,306

Maine1,500

Maryland 13,292

Massachusetts8,642

Michigan42,999

Minnesota 9,320

Mississippi14,514

Missouri 20,482

Montana1,140

Nebraska 6,099

Nevada10,046

New Hampshire2,053

New Jersey 19,366

New Mexico 3,549

New York 31,532

North Carolina33,266

North Dakota 714

Ohio 47,333

Oklahoma15,340

Oregon8,493

Pennsylvania30,891

Rhode Island 1,339

South Carolina 15,141

South Dakota 972

Tennessee 47,992

Texas59,627

Utah 7,610

Vermont 877

Virginia 24,026

Washington State13,706

West Virginia2,955

Wisconsin 13,060

Wyoming 618

Total = 875,899

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