Despite reports that the economy is about to improve, bankruptcy filings across the United States and in Georgia continue to increase.
More than 1.3 million bankruptcy cases were filed nationwide in the 12-month period ended June 30, according to statistics from the Administrative Office of the U.S. Courts. That's a 35 percent increase compared with the 967,831 filed during the same period in 2008.
In the bankruptcy courts in Georgia's three districts, filings for the same comparison period rose 27 percent, growing by more than 15,000 to 69,980.
Filings in the U.S. Bankruptcy Court for the Northern District of Georgia remained high as well.
According to data compiled by the clerk's office, Chapter 7 filings spiked in the first half of 2009, when compared with the same period in 2008, rising 60 percent, from about 9,500 to more than 15,000. Chapter 11 reorganization filings increased as well, though not as dramatically, moving up 16 percent, from 170 to 197. Filings for Chapter 13 repayment plans remained fairly steady, growing 5 percent, from 8,370 to 8,768.
That data comes on the heels of several positive economic indicators and reports.
Earlier this month, the government reported that in July, for the first time in months, the United States suffered fewer job losses than in the prior month, with employers slashing 247,000 jobs compared with January's high of 741,000. Also, in the Blue Chip Economic Indicators survey of private economists, 90 percent of respondents said they believed the recession would be declared over in the third quarter of this year. The respondents also said they believed that the issues going forward were how quickly the recovery would occur and how strong and long-lasting it would be.
The most recent filings in Georgia's Northern District, which are not included in the 12-month statistical calculations compiled by the Administrative Office of the U.S. Courts, still show a continuing increase in bankruptcy activity.
In July alone, Chapter 7 filings rose 59 percent from the same month a year ago, from 1,741 to 2,767. Chapter 13s increased 39 percent, from 1,253 to 1,736. Chapter 11 reorganizations, while still not high when compared to much more active courts such as those in Delaware or the Southern District of New York, jumped from 19 to 36.