Bankruptcy Filings Decline for Second Consecutive Year

Total bankruptcy filings for the 12-month period ended December 31, 1994 were 832,829, compared to 875,202 cases filed for the same time period in 1993. The Central District of California lead the nation with the most bankruptcy filings at 82,616. The Ninth Circuit, with the greatest number of filings at 203,544, also experienced the largest decline in filings at 8 percent. Of the total number of bankruptcy filings, 567,240 were Chapter 7 cases, or straight liquidations. Chapter 7 is designed for individuals or businesses who wish to start over but cannot pay their debts from their incomes. Under this chapter, the individual debtor is permitted to keep certain exempt property and the remaining property is sold to satisfy creditors. The next largest group of bankruptcy filings were under Chapter 13, totaling 249,877. Under Chapter 13, creditors may be repaid, in full or part, in installments, over a three- to five-year period. There were 14,773 Chapter 11 bankruptcies, a chapter that allows a business to continue to operate while devising a plan to repay creditors. Nine hundred Chapter 12 bankruptcies were filed in 1994; Chapter 12 is designed to meet the needs of financially distressed family farmers. December 31 was the end of the first quarter of fiscal year 1995. In the first quarter, 201,618 bankruptcy cases were filed. Total business filings numbered 11,923 and total non-business filings were 189,695. Business and Nonbusiness Bankruptcy Cases Filed, By Chapter During the 3-Month Period Ended December 31, 1994 Total Filings; Chap.7, Chap.11, Chap.12, Chap.13 201,618; 135,610; 3,108; 194; 62,692 Total Business Filings; Chap.7, Chap.11, Chap.12, Chap. 13 11,923; 6,796; 2,700; 194; 2,219 Total Non-Business Filings; Chap.7, Chap.11, Chap.13 189,695; 128,814; 408; 60,473 Quarterly Bankruptcy Filings 3 Month Period Ending: Total Filings* DEC. 31, 1994: 201,618 SEPT. 30, 1994: 208,187 JUN. 30, 1994: 216,213 MAR. 31, 1994: 206,565 DEC. 31, 1993: 206,570 SEPT. 30, 1993: 215,498 JUN. 30, 1993: 229,406 MAR. 31, 1993: 222,694 DEC. 31, 1992: 228,562 SEPT. 30, 1992: 236,810 JUN. 30, 1992: 250,622 MAR. 31, 1992: 252, 733 DEC. 31, 1991: 234,383 SEPT. 30, 1991: 231,743 JUN. 30, 1991: 246,430 MAR. 31, 1991: 231,017 DEC. 31., 1990 :209,798 SEPT. 30, 1990 :192,555 JUN. 30, 1990 :196,677 *Because of ongoing corrections to the bankruptcy database, the quarterly data may not total to the most recent annual figures. ----- Brought to you by - The 'Lectric Law Library The Net's Finest Legal Resource For Legal Pros & Laypeople Alike. http://www.lectlaw.com