Bankruptcy filings keep climbing

Posted on August 19, 2009 10:15 by Janet Conley

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.


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Janet ConleyThe Deal Watch Blog is devoted to bringing you the latest news in business law in Atlanta, the Southeast and the U.S. The lead writer is Daily Report associate editor Janet L. Conley.

Janet L. Conley is an attorney who returned to journalism after practicing law with Akin, Gump, Strauss, Hauer & Feld in Washington and with the Georgia Legal Services Program in Atlanta.

During her tenure at the Daily Report, Janet, now the paper's associate editor, has covered law firm economics and management, business and federal courts. In 2007, she received the Georgia Associated Press Story of the Year award and the Atlanta Press Club’s Journalist of the Year award, both for small circulation newspapers, for "Green to Gold," a series of articles on how climate change will alter business and the law.

Janet has written for The American Lawyer magazine and the National Law Journal, among other publications. She also served as managing editor of GC South magazine.

Janet holds a journalism degree from Southern College and a juris doctor degree from the University of Pennsylvania. She lives in Decatur with her husband Mark Harper, also an attorney, and their three children.

She can be reached at jconley@alm.com.

Andy PetersThe contributing writer is Daily Report staff reporter Andy Peters.

Andy Peters has been a journalist since graduating from Furman University in 1992. A short list of the subjects he’s covered includes the Georgia state Legislature, the U.S. semiconductor industry, the Alabama-Florida-Georgia “water wars” litigation, the 1999 American Airlines pilots strike, Coca-Cola and PepsiCo’s battle to acquire the Gatorade sports-drink brand, indie rock music and high school football. Andy has written for Bloomberg News, the New York Times Web site, the Macon Telegraph, the Spartanburg (S.C.) Herald-Journal and the Atlanta Business Chronicle.

Andy has written the Deal Watch column for the Daily Report since March 2006. He was born in Chattanooga, Tenn. in 1971 and grew up in Ringgold, Ga. He lives in Decatur with his wife and two children.

He can be reached at apeters@alm.com.

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