By Ryan C. Wood

After the passage of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act and the rush to file bankruptcy before the law change, many attorneys believed bankruptcy filings would decrease.  Well, the mortgage crisis and bad economy changed all of that.  The following is a comparison of bankruptcy filings under Chapter 7, Chapter 13 and Chapter 11 for the United States Bankruptcy Court Northern District of California.

In 2007 there were a total of 127,359 bankruptcy cases filed in the Northern District of California.  Each month and each quarter of the year filings increased month after month.  2007 really was the start of increases in bankruptcy filings.  The 2^nd quarter of 2007 realized a 16% increase in bankruptcy filings, the 3^rd quarter of 2007 increased 7% more and the 4^th quarter of 2007 increased another 14% for a total of 21,758 filings for the last three months of 2007.  2008 realized an even larger increase in cases filed.  The 1^st Quarter increased 18% from the last quarter of 2007, the 2^nd quarter of 2008 increased 26%, the 3^rd quarter of 2008 increased 14% and the 4^th quarter increased by 3% for a total of 38,011 filings for the last three months of 2008.

Increase in Filings For the United States Bankruptcy Court Northern District of California from 2007 – 2008

Quarter. . . . . . .Year . . Cases Filed . . Quarter . . . . . . .Year . . . Cases Filed . . . . 2007 – 2008 Increase

1^st Quarter        2007    15,041            1^st Quarter        2008      25,727              71% more than 2007

2^nd Quarter       2007    17,505            2^nd Quarter       2008      32,387              85% more than 2007

3^rd Quarter       2007    18,778            3^rd Quarter        2008      37,083              97% more than 2007

4^th Quarter       2007    21,758            4^th Quarter        2008      38,011              75% more than 2007

Increase in Bankruptcy Filings For the Whole 9^th Circuit from 2007 – 2008

Quarter . . . . . . Year . . .Cases Filed . . . . Quarter . . . . . .Year . . Cases Filed . . . 2007 – 2008 Increase

1st Quarter       2007     26,960              1st Quarter       2008    42,165                56% more than 2007

2nd Quarter      2007     31,124              2nd Quarter      2008    52,874                69% more than 2007

3rd Quarter       2007     32,808              3rd Quarter      2008     60,026               82% more than 2007

4th Quarter       2007     36,467              4th Quarter      2008     61,395               68% more than 2007

As shown above, bankruptcy filings increased by approximately 70% from 2007 to 2008.  The number of foreclosures and adjusting interest only or negative amortization mortgages contributed significantly to the increase in bankruptcy cases.  Also layoffs and the general sluggishness of the economy contributed as well.  As 2009 approached the number of filings continued to increase at an even larger percentage.  Bookmark Bay Area Bankruptcy Buzz for more information about the increase in bankruptcy filings during 2009.  We will also be providing comparisons of the increase and number of filings in various states throughout the United States.

Contact us today for information from our bankruptcy lawyer or bankruptcy attorney to find out if bankruptcy is right for you and your family.  You may reach us toll free at 1-877-963-9543 or submit your information with our on-line submission form.