Tucson bankruptcy filings - which spiked in recent years due to tight credit, plummeting housing values and the persistently sluggish economy - may have started to level off.
Total filings in the first half of 2011, at 3,808, were 7.5 percent fewer than in the same time period last year.
Statewide, the number of bankruptcy filings has also been dropping, data from the U.S. Bankruptcy Court's Arizona District show. There were 19,080 bankruptcy filings in Arizona during the first six months of 2011, a 7.5 percent drop compared to the first half of 2010.
The decreases come after four years of booming bankruptcy rates. Filings have roughly tripled since the onset of the recession. From January to June 2007, there were 1,208 bankruptcy filings in Tucson.
The most frequent filing is Chapter 7, when people or businesses sell off their remaining assets to repay creditors. In Tucson there were 3,052 such filings in the first half of 2011, down 8.5 percent from the same period in 2010.
But Tucson's Chapter 11 filings - used primarily by businesses to restructure their debts - haven't experienced a similar decrease. There were 49 Chapter 11 filings in the first half of 2011. During the same time last year, there were 40 such filings.
Read the rest of the article at the Arizona Daily Star
No comments:
Post a Comment