Bankruptcy Filings: A Look Back and Your Predictions!
CIN Legal Data Services takes a look back at bankruptcy filings and asks for your opinion on 2010. Enter today for your chance to win $1,000.
Coming out of the smoke from 2005 - the year that was until October 17th, there was great uncertainty and anxiety about what would happen to the number of consumer bankruptcy filings in 2006. BAPCPA was enacted by Congress with the expressed intent of making it more difficult for consumers to file a Chapter 7 Bankruptcy and instead forcing them to file a 13. Ultimately the bill was crafted for the purpose of decreasing the total number of filings under the presumption that there was widespread abuse. Looking back at the number of filings in 2006’s (i.e.573,151) versus the numbers in 2004 and prior, proponents of the law felt vindicated that the bill had accomplished those objectives.
The following three years, however, have seen a significant increase in filings. Many within the bankruptcy community believe that low 2006 filing levels were a result of 2005’s pre-enactment volume that saw filings increase to over 2,000,000. Others, however, believe that the climb to 2009’s level of 1,406,125 filings has been a direct result of the sluggish economy, mortgage crisis, and rising unemployment, and not in fact related to any failures in BAPCPA’s intent.
A recap of the last four (4) years of bankruptcy filings is provided below:
- 2006: 573,151
- 2007: 801,880
- 2008: 1,060,061
- 2009: 1,406,125
At CIN Legal Data Services, management believes that given the current economic factors, bankruptcy filings will at least meet or exceed 2009’s levels. The organization, however, would welcome your input and feedback on where you see the 2010 year headed, and how you are preparing your practice for changing filing numbers.
As an incentive to provide this feedback, CIN Legal Data Services is offering the client who most closely predicts 2010’s actual filing volume a $1,000 cash prize to be awarded in January 2011. Furthermore, CIN Legal Data Services will provide an overview of the results of its survey in the next issue of Efficiencies as a means of helping firms know what the general industry consensus is.
To access this survey and register to win $1,000, please visit www.cinlegal.com/2010. The company looks forward to receiving your feedback and comments on the state of bankruptcy. Should you have questions or comments on this survey, or if you would like to discuss bankruptcy in general, please contact Russ Russell, Chief Customer Officer at 937-235-8907.