Phoenix bankruptcies up in May, down from 2011

On behalf of Ellett Law Offices , P.C. posted in 1. Personal Bankruptcy on Monday, June 18, 2012
While May brought Phoenix area bankruptcies to a nine-month high, some analysts say it may not be cause for major concern yet. The number of businesses and individuals seeking bankruptcy – – including Chapter 7, Chapter 11 and Chapter 13 bankruptcy filings – reportedly rose from 1,999 in April to 2,080 in May, yet this is said to be a modest increase. Overall, the latest numbers are reportedly in line with what appears to be a pattern of stabilization.
In May, 69,000 jobs were created nationally, the lowest monthly number in the past year. Other indicators point to an economic slowdown as well, which leads to job loss and debt accumulation; key factors in individuals filing for bankruptcy.
By comparison, The Arizona Republic reports that bankruptcy filings fell 16 percent this May from May 2011 in the Phoenix area. For all of Arizona, bankruptcy filings rose to 2,856 in May from the 2,703 in April, but dropped 14 percent overall from May 2011. Foreclosures have dropped a good deal in the past year, as well.
While the numbers of Chapter 7, Chapter 11 and Chapter 13 bankruptcy filings for individuals and businesses appear to be up in general, it appears that overall rates seem to be in a stable if not slightly downward trend from the past years. That may be heartening for some. Still, there likely are many who remain hard pressed in the continued tough times and debt will continue to be a problem for some people. Bankruptcy filing may continue to be a viable response to the dilemma.
Source: AZcentral.com, “Bankruptcy news isn’t all negative,” Russ Wiles, The Arizona Republic, June 5, 2012
Tags: Chapter 13, Chapter 7, personal bankruptcy