San Diego Chapter 13 Bankruptcies Rise Again in Q3 2009
February 17, 2010
Before Q4 2009 data is released on Chapter 13 filings in San Diego, let’s take a look back at the Q3 2009 numbers to see what we can expect in next month’s release.
If you recall in previous articles on bankruptcy data in San Diego, attorney Cecilia Chen noted that she expected Chapter 7 and 13 fillings to increase. Turns out she was right.
Families are coming in more and more to file for Chapter 7. They generally do not have enough income to qualify for Chapter 13.
I do think that Chapter 7 and 13 bankruptcy filings will continue to increase in year 2010 and beyond because unemployment has not abated and we are currently in a false sense of stability. Next year, government interventions will start to disappear, shadow inventory (houses that banks now hold but have yet to put up for sale) will hit the market and mortgage rates will start to rise. I’m also seeing credit card companies are also increasing the interest rate and minimum monthly payments, creating a significant hardship on many families in San Diego.
Although there have been increases in filings in both Chapter 7 and 13, the rate at which people are filing has in fact flat-lined. Read more
San Diego Chapter 7 Bankruptcies Set New Records in Q3 2009
February 15, 2010
As we await the release of fourth quarter chapter 7 bankruptcy data for the San Diego area let’s take a look at the numbers of Q3 compared to previous periods in 2009.
The graph indicates the continued 2009 upward trend of Chapter 7 bankruptcies claims in San Diego. Claims have increased 3x since 2007 and broke another record for filings in Q3 2009 (since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was written into law).
Bankruptcy filings are one of many indicators that our financial system is still dealing with debt loads larger than we can handle. The Chapter 7 numbers include mostly consumer related filings. Nonetheless, there are positives in the numbers despite the all time high of 15,407 filings in the San Diego area.
Bankruptcy Part 3 Q&A: Podcast Transcript
February 4, 2010
Here is a similar transcript to review from a podcast on the topic of bankruptcies in San Diego found here.
Q. How does bankruptcy work if you’re married? Spouse with different credit ratings.
In a community property state such as California, both individuals will have to report their income if they married regardless of whether they file jointly or without their spouse. If both spouses file, the bankruptcy will affect their credit rating; if all the debt are in both spouses name both will have to file. If everything is kept separate and all the debts are in one spouses name (particularly if incurred prior to couple becoming married), it is possible that only one will have to file. Read more
Bankruptcy Part 3: Private Information and Home Equity
February 2, 2010
Podcast: Play in new window | Download (Duration: 8:26 — 3.9MB)
Another podcast brought to you by the Law Office of Cecilia Chen, the final segment of a series on bankruptcy.
This is part 3 of a 3 part series discussing questions on the topic of bankruptcy. All of our information is provided with the California legal system in mind, specifically devoted to San Diego and area. Read more
