**Updated March 23, 2011**
The largest data set, apart from California as a whole, for bankruptcy filings comes from LA and Long Beach MSA. Because of the size of the data we can both infer upcoming trends in the overall California economy. Conversely, sometimes we observe slower changes in areas where there’s a higher population and thus more data. Here are brief summaries of each primary consumer bankruptcy filing chapter.
Chapter 7 Bankruptcy Data Summary
- Q4 2010 filings were still an increase, yet that rate of increase compared to the previous quarter was just 2%, the lowest increase since 2007.
- Expected decrease in actual filing number expected in mid-2011.
- All time high since the 2005 legislation change was implemented was Q4 2010 registering over 51,000 filings. Those numbers haven’t been seen since 1999.
- Q1 2010 numbers were approximately 460% higher than Q1 2007.
- Rate of increase in Chapter 7 filings has steadily decreased since mid-2009.
- Largest percentage increase between quarters occurs six months prior to the 2008 meltdown, and starts to slow a year after. Largest single quarter increase was in the 2nd to 3rd quarter 2008.
Chapter 13 Bankruptcy Data Summary
- Unlike Chapter 7 claims, Chapter 13 claims data is not as neat and tidy as the downward trend in percent increase filings. The rate of increase bounces between 6-10% on average.
- Q3 – 2010 data saw an increase in filings, but also the rate of increase was higher than the previous quarter comparison (that is Q2 increase compare to Q1) at 10%. This number, however, for Q4 was significantly lower at just under 4%.
- Difficult to predict trend of 2011, but if there will be a decline in Chapter 13 filings it won’t occur until late 2011 or early 2012.
- Prior to 2008 crash Q1 – 2008 saw the fewest claims in over a decade (albeit these numbers are a bit of an anomaly).
- Chapter 13 claims have risen about 670% from q 1 2007 to q 1 2010.
For experienced bankruptcy consultation contact San Diego Bankruptcy Attorney Cecilia Chen.
All data collected herein provided by RAND California from 2007 onward.