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Bankruptcy filings up in Indiana

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Bankruptcy cases in federal courts have increased more than 30 percent in the fiscal year ending in September as compared to the 2007 fiscal year. In Indiana, bankruptcy cases have increased more than 25 percent in the U.S. District Court's Northern and Southern districts.

For the federal judiciary's fiscal year ending Sept. 30, the Northern and Southern Districts had 37,538 bankruptcy filings, according to statistics from U.S. Courts. Filings increased 25 percent in the Northern District and 27.5 percent in the Southern District. In the 2007 fiscal year, bankruptcies filed in Indiana totaled 29,656.

Nationally, 1,042,993 bankruptcy cases were filed in federal courts this fiscal year, as compared to the 801,269 filed in 2007.

Matthew Schiller, partner of Schiller Law Offices in Indianapolis, isn't surprised by the increase in bankruptcies here. He's seen an increase as a result of foreclosures and credit card use.

Many adjustable rate mortgages entered into two or three years ago are resetting now and increasing to the point people can't make their payments, he said. And, because of the credit crisis, people can't refinance their mortgages, get credit, or transfer credit card balances.

"We started to see an increase six to eight months ago," he said. "A lot of it is tied to credit problems."

Besides housing and credit card issues, people have filed bankruptcy as a result of unemployment, Schiller said.

While Indiana's filings have increased, the state didn't experience the extreme uptick in filings states such as Arizona, California, Florida, and Nevada have seen. Bankruptcy filings in the Central District of California went up more than 96 percent over last year; Arizona's filings increased by 73.4 percent.

As for the states bordering Indiana, Illinois and Kentucky had comparable increases to Indiana at 25.1 percent in Illinois, and 26.6 percent in Kentucky. Ohio courts saw an average increase of around 13 percent and Michigan was near 22 percent.

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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