ILNews

Bankruptcy filings ease slightly in Indiana

Back to TopCommentsE-mailPrintBookmark and Share

Total bankruptcy filings in the Southern District of Indiana ticked down last year. Business bankruptcies in Indiana dropped 3.2 percent.

Bankruptcy filings in Indiana dipped slightly in 2010—the first decline in four years—and showed a late-year slowdown that may indicate consumers are starting to manage their finances better.

Filings in the Southern District of Indiana totaled 28,901 last year, a slight 0.2-percent decrease from 2009, according to statistics released earlier this month by the Alexandria, Va.-based American Bankruptcy Institute.

Total bankruptcy filings in the district fell last year for the first time since 2006, a year after bankruptcy reform became law.

Even so, Mark Zuckerberg said his local bankruptcy practice continues to thrive.

“It’s still a little harder to file,” he said, referring to 2005 reform that made it more difficult to wipe away debt. “But if they’ve lost their job or can’t pay their bills, they still have to do something.”

Statewide, total bankruptcies in 2010 dipped to 47,304, a 2-percent decline from 2009, according to ABI.

Indiana still ranked 10th in the nation last year in terms of total bankruptcy filings. California (260,210), Florida (113,066) and Illinois (82,669) topped the list.

Signs of a downward trend may have become more pronounced late last year. Filings in the fourth quarter of 2010 dropped to 6,164 in the district, a nearly 7-percent decline from the same quarter the previous year. Statewide, fourth-quarter filings fell from 11,081 to 9,941, a 10-percent drop.

Total bankruptcy filings in the United States increased to nearly 1.6 million in 2010, an 8-percent increase from the previous year, ABI said. But the growth rate of bankruptcy filings eased after three years of double-digit growth.

“The slowing of the growth rate of bankruptcies reflects a retrenchment in consumer spending associated with a down U.S. economy,” ABI Executive Director Samuel J. Gerdano said in a written statement.

Business bankruptcies nationwide decreased 7.5 percent in 2010, to 56,282. Chapter 11 filings dropped the most, falling 14 percent last year, to 11,774.

In Indiana, business bankruptcies totaled 918 in 2010, a 3.2-percent dip from the previous year.

The number of business bankruptcy filings by type—Chapter 7 liquidation and Chapter 11 reorganization—weren’t available for each state or district.

Jerry Ancel, co-chairman of Taft Stettinius & Holliste’s business restructuring group in Indianapolis, said he's seen Chapter 11 filings falling within his practice, but only because businesses often don’t have the means to restructure.

“There hasn’t been a lot of asset-based capital in the past couple of years,” he said. “[Chapter 11] just becomes less of a viable tool.”

Despite the poor economy, total bankruptcy filings in the Southern District still remain relatively low compared with the early years of last decade.

From 2002 to 2004, bankruptcies annually numbered 32,000 to 35,000 before surging to 47,710 in 2005, when bankruptcy reform became law that October.

This story originally ran in the Feb. 28 IBJ Daily.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Call it unauthorized law if you must, a regulatory wrong, but it was fraud and theft well beyond that, a seeming crime! "In three specific cases, the hearing officer found that Westerfield did little to no work for her clients but only issued a partial refund or no refund at all." That is theft by deception, folks. "In its decision to suspend Westerfield, the Supreme Court noted that she already had a long disciplinary history dating back to 1996 and had previously been suspended in 2004 and indefinitely suspended in 2005. She was reinstated in 2009 after finally giving the commission a response to the grievance for which she was suspended in 2004." WOW -- was the Indiana Supreme Court complicit in her fraud? Talk about being on notice of a real bad actor .... "Further, the justices noted that during her testimony, Westerfield was “disingenuous and evasive” about her relationship with Tope and attempted to distance herself from him. They also wrote that other aggravating factors existed in Westerfield’s case, such as her lack of remorse." WOW, and yet she only got 18 months on the bench, and if she shows up and cries for them in a year and a half, and pays money to JLAP for group therapy ... back in to ride roughshod over hapless clients (or are they "marks") once again! Aint Hoosier lawyering a great money making adventure!!! Just live for the bucks, even if filthy lucre, and come out a-ok. ME on the other hand??? Lifetime banishment for blowing the whistle on unconstitutional governance. Yes, had I ripped off clients or had ANY disciplinary history for doing that I would have fared better, most likely, as that it would have revealed me motivated by Mammon and not Faith. Check it out if you doubt my reading of this, compare and contrast the above 18 months with my lifetime banishment from court, see appendix for Bar Examiners report which the ISC adopted without substantive review: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

  2. Wow, over a quarter million dollars? That is a a lot of commissary money! Over what time frame? Years I would guess. Anyone ever try to blow the whistle? Probably not, since most Hoosiers who take notice of such things realize that Hoosier whistleblowers are almost always pilloried. If someone did blow the whistle, they were likely fired. The persecution of whistleblowers is a sure sign of far too much government corruption. Details of my own personal experience at the top of Hoosier governance available upon request ... maybe a "fake news" media outlet will have the courage to tell the stories of Hoosier whistleblowers that the "real" Hoosier media (cough) will not deign to touch. (They are part of the problem.)

  3. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  4. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  5. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

ADVERTISEMENT