ILNews

Hoosier bankruptcy filings among highest

Michael W. Hoskins
January 1, 2008
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Bankruptcy filings have increased so much in Indiana that some U.S. trustees handling Chapter 7 proceedings may want to add an extra session each month to hear new cases.

Attorneys statewide are seeing more clients from an uptick in filings, and as a result are not surprised to hear that federal filings across the country surged 38 percent in 2007. Nor are they surprised that Indiana ranked fourth highest in the nation overall and top in the country for the number of Chapter 7 filings last year.

"It doesn't surprise me that numbers are up," said Fort Wayne bankruptcy attorney Edward Craig. "Indiana isn't the best place to practice (bankruptcy) law in the world, but in terms of need there's no better place. This is still a lucrative practice."

Figures released Tuesday from the Administrative Office of the U.S. Courts show federal bankruptcy filings surged 38 percent last year, a significant jump following a year that saw sharp declines after the Bankruptcy Abuse Prevention and Consumer Prevention Act took effect in October 2005.

A historic high came in 2005 prior to the federal law, when more than 2 million bankruptcies were filed. Overall filings fell sharply in 2006 to about 617,580 but started climbing again last year, reaching 850,912 filings, figures show. Chapter 7 filings increased 44 percent, from 360,890 to 519,364 filings; Chapter 13 filings increased 29 percent, from 251,179 to 324,773 filings. The Chapter 11 filings jumped 23 percent while the Chapter 12 filings rose by less than 1 percent, figures show.

Tennessee, Georgia, and Alabama ranked first through third in total Chapter 7 and Chapter 13 bankruptcy filings, respectively. In Indiana, the Northern District Bankruptcy Court saw a surge greater than the national average while the Southern District closely mirrored what was happening nationally. The Northern District filings increased from 8,279 in 2006 to 11,764 last year; the Southern District jumped from 13,955 to 19,358 in 2007.

About 8,583 filings in the Northern District represented Chapter 7 bankruptcies, while 12,846 were in that category in the Southern District, the figures show.

In Indianapolis, bankruptcy attorney Jim Young with Rubin & Levin said his colleagues are not surprised by the increase in filings.

"We've been speculating as to when it would start picking up, and this shows that's happening," he said. "Normally, the Indianapolis panel (of trustees) would have two days a month when they'd hear new cases, but starting in May they are starting a third session. That's a consistent indication of how much the bankruptcy caseload is picking up for the trustees."

Young said that Indiana's economy, as in other states seeing similar high bankruptcy filings, is a main reason for the increase.

The current level of bankruptcy filings is probably close to where it should be, or is at least getting to that point, said Craig.

"You have to go pre-scare, not just pre-2005," he said. "That goes before 2001 or maybe even before the rumblings of bankruptcy reform in the late 1990s. Numbers now are close to that (2000) level, and 2008 is promising to turn out to be comparable."
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  1. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

  2. Can anyone please help this mother and child? We can all discuss the mother's rights, child's rights when this court only considered the father's rights. It is actually scarey to think a man like this even being a father period with custody of this child. I don't believe any of his other children would have anything good to say about him being their father! How many people are afraid to say anything or try to help because they are afraid of Carl. He's a bully and that his how he gets his way. Please someone help this mother and child. There has to be someone that has the heart and the means to help this family.

  3. I enrolled America's 1st tax-free Health Savings Account (HSA) so you can trust me. I bet 1/3 of my clients were lawyers because they love tax-free deposits, growth and withdrawals or total tax freedom. Most of the time (always) these clients are uninformed about insurance law. Employer-based health insurance is simple if you read the policy. It says, Employers (lawyers) and employees who are working 30-hours-per-week are ELIGIBLE for insurance. Then I show the lawyer the TERMINATION clause which states: When you are no longer ELIGIBLE! Then I ask a closing question (sales term) to the lawyer which is, "If you have a stroke or cancer and become too sick to work can you keep your health insurance?" If the lawyer had dependent children they needed a "Dependent Conversion Privilege" in case their child got sick or hurt which the lawyers never had. Lawyers are pretty easy sales. Save premium, eliminate taxes and build wealth!

  4. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  5. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

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