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. OK, take notice. Those wondering just how corrupt the Indiana system is can see the picture in this post. Attorney Donald James did not criticize any judges, he merely, it would seem, caused some clients to file against him and then ignored his own defense. James thus disrespected the system via ignoring all and was also ordered to reimburse the commission $525.88 for the costs of prosecuting the first case against him. Yes, nearly $526 for all the costs, the state having proved it all. Ouch, right? Now consider whistleblower and constitutionalist and citizen journalist Paul Ogden who criticized a judge, defended himself in such a professional fashion as to have half the case against him thrown out by the ISC and was then handed a career ending $10,000 bill as "half the costs" of the state crucifying him. http://www.theindianalawyer.com/ogden-quitting-law-citing-high-disciplinary-fine/PARAMS/article/35323 THE TAKEAWAY MESSAGE for any who have ears to hear ... resist Star Chamber and pay with your career ... welcome to the Indiana system of (cough) justice.

  2. GMA Ranger, I, too, was warned against posting on how the Ind govt was attempting to destroy me professionally, and visit great costs and even destitution upon my family through their processing. No doubt the discussion in Indy today is likely how to ban me from this site (I expect I soon will be), just as they have banned me from emailing them at the BLE and Office of Bar Admission and ADA coordinator -- or, if that fails, whether they can file a complaint against my Kansas or SCOTUS law license for telling just how they operate and offering all of my files over the past decade to any of good will. The elitist insiders running the Hoosier social control mechanisms realize that knowledge and a unified response will be the end of their unjust reign. They fear exposure and accountability. I was banned for life from the Indiana bar for questioning government processing, that is, for being a whistleblower. Hoosier whistleblowers suffer much. I have no doubt, Gma Ranger, of what you report. They fear us, but realize as long as they keep us in fear of them, they can control us. Kinda like the kids' show Ants. Tyrannical governments the world over are being shaken by empowered citizens. Hoosiers dealing with The Capitol are often dealing with tyranny. Time to rise up: https://www.theguardian.com/technology/2017/jan/17/governments-struggling-to-retain-trust-of-citizens-global-survey-finds Back to the Founders! MAGA!

  3. Science is showing us the root of addiction is the lack of connection (with people). Criminalizing people who are lonely is a gross misinterpretation of what data is revealing and the approach we must take to combat mental health. Harsher crimes from drug dealers? where there is a demand there is a market, so make it legal and encourage these citizens to be functioning members of a society with competitive market opportunities. Legalize are "drugs" and quit wasting tax payer dollars on frivolous incarceration. The system is destroying lives and doing it in the name of privatized profits. To demonize loneliness and destroy lives in the land of opportunity is not freedom.

  4. Good luck, but as I have documented in three Hail Mary's to the SCOTUS, two applications (2007 & 2013),a civil rights suit and my own kicked-to-the-curb prayer for mandamus. all supported in detailed affidavits with full legal briefing (never considered), the ISC knows that the BLE operates "above the law" (i.e. unconstitutionally) and does not give a damn. In fact, that is how it was designed to control the lawyers. IU Law Prof. Patrick Baude blew the whistle while he was Ind Bar Examiner President back in 1993, even he was shut down. It is a masonic system that blackballs those whom the elite disdain. Here is the basic thrust:https://en.wikipedia.org/wiki/Blackballing When I asked why I was initially denied, the court's foremost jester wrote back that the ten examiners all voted, and I did not gain the needed votes for approval (whatever that is, probably ten) and thus I was not in .. nothing written, no explanation, just go away or appeal ... and if you appeal and disagree with their system .. proof positive you lack character and fitness. It is both arbitrary and capricious by its very design. The Hoosier legal elites are monarchical minded, and rejected me for life for ostensibly failing to sufficiently respect man's law (due to my stated regard for God's law -- which they questioned me on, after remanding me for a psych eval for holding such Higher Law beliefs) while breaking their own rules, breaking federal statutory law, and violating federal and state constitutions and ancient due process standards .. all well documented as they "processed me" over many years.... yes years ... they have few standards that they will not bulldoze to get to the end desired. And the ISC knows this, and they keep it in play. So sad, And the fed courts refuse to do anything, and so the blackballing show goes on ... it is the Indy way. My final experience here: https://www.scribd.com/document/299040062/Brown-ind-Bar-memo-Pet-cert I will open my files to anyone interested in seeing justice dawn over Indy. My cases are an open book, just ask.

  5. Looks like 2017 will be another notable year for these cases. I have a Grandson involved in a CHINS case that should never have been. He and the whole family are being held hostage by CPS and the 'current mood' of the CPS caseworker. If the parents disagree with a decision, they are penalized. I, along with other were posting on Jasper County Online News, but all were quickly warned to remove posts. I totally understand that some children need these services, but in this case, it was mistakes, covered by coorcement of father to sign papers, lies and cover-ups. The most astonishing thing was within 2 weeks of this child being placed with CPS, a private adoption agency was asking questions regarding child's family in the area. I believe a photo that was taken by CPS manager at the very onset during the CHINS co-ocerment and the intent was to make money. I have even been warned not to post or speak to anyone regarding this case. Parents have completed all requirements, met foster parents, get visitation 2 days a week, and still the next court date is all the way out till May 1, which gives them(CPS) plenty of to time make further demands (which I expect) No trust of these 'seasoned' case managers, as I have already learned too much about their dirty little tricks. If they discover that I have posted here, I expect they will not be happy and penalized parents again. Still a Hostage.

ADVERTISEMENT