San Diego Chapter 7 Bankruptcies Set New Records in Q3 2009
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.
Chapter 7 filings, the most common type for individuals, were up over 200% in the first quarter of 2009 compared to the same period in 2007. Every quarter since Q4 of 2006 has seen an increase in filings compared to the preceding quarter including the recent Q3 data. That’s the bad news.
Although the highest number of claimants was recorded in Q3 09, it appears the percentage by which bankruptcy filings occurred decreased in the Fall of 2009 compared to the previous quarter. This graph explains the decrease.
This graph outlines that the percentage increase from Q2 2009 to Q3 2009 was in fact the least percentage increase since Q1 2007 at a 9.86% increase compared to 11.11% in the previous quarter. Although this is not a monumental decline, it may indicate that the trend of consumers living beyond their means is slowly decreasing and consumer debt decreases and consumer spending decrease along with it.
We will find out more information as Q4 2009 data is released early next month. Hopefully the good news continues.
If you find yourself as one of the many people looking to file for bankruptcy then pay attention to some important tips from our bankruptcy attorney Cecilia Chen.
If you have further questions about Chapter 7 bankruptcy proceedings contact Cecilia Chen for a consult.
* All data, not including graphs, are courtesy of RAND California.
