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Orange County bankruptcies up 62 percent
Nearly 1,200 individuals and businesses filed in May.
By Kristen SchottPublished: July 13, 2009 09:21 AM
The number of individuals and businesses filing for bankruptcy in Orange County in May jumped 62 percent compared to the same time last year, according to statistics from the U.S. Bankruptcy Court of the Central District of California, which has a local division in Santa Ana.
There were 1,191 filings in May, which is the greatest total for a single month since the bankruptcy law changed four years ago. The majority – a little more than 1,000 – were Chapter 7, followed by Chapter 13 and Chapter 11, respectively. The spike could be attributed to the fact that Orange County is suffering under the weight of the state's $26 billion budget deficit.
The number of cases is also up about 5 percent from April, which saw 1,130 filings.
For the entire Central District of California – which includes the Santa Ana, Riverside, L.A., Northern and San Fernando divisions – there were about 9,000 bankruptcy filings. The number is up 72 percent compared to May 2008.
Nationwide, consumer bankruptcy filings were up about 37 percent for January through June of this year, according to a recent report from the American Bankruptcy Institute.
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There were 1,191 filings in May, which is the greatest total for a single month since the bankruptcy law changed four years ago. The majority – a little more than 1,000 – were Chapter 7, followed by Chapter 13 and Chapter 11, respectively. The spike could be attributed to the fact that Orange County is suffering under the weight of the state's $26 billion budget deficit. The number of cases is also up about 5 percent from April, which saw 1,130 filings. For the entire Central District of California – which includes the Santa Ana, Riverside, L.A., Northern and San Fernando divisions – there were about 9,000 bankruptcy filings. The number is up 72 percent compared to May 2008. Nationwide, consumer bankruptcy filings were up about 37 percent for January through June of this year, according to a recent report from the American Bankruptcy Institute. Related headlines O.C. left off Fortune's roster of fastest-growing companies Irvine leads the county in layoffs. Is it a numbers game? 'OC METRO Minute,' July 10: SBA loans up in second quarter 'OC METRO Minute,' July 8: St. Regis foreclosure auction delayed a week |
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