Bankruptcy Report: Increase Over 2006, Experts Say More to Come
The 4th quarter of 2007 continued the steady up trend in the bankruptcy markets, according to a press release from www.OnlineBKmanager.com.
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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