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Thursday, March 12, 2009
Ind. Courts - More on: "More and more finding themselves in bankruptcy court"
Updating yesterday's ILB entry on Judge Basil H. Lorch's busy federal bankruptcy court in New Albany, Andy Grimm has a report today in the Gary Post Tribune, headed "Economy boosts bankruptcy filings." Some quotes:
HAMMOND -- There may be one growth industry in Northwest Indiana in these recessionary times. Bankruptcy lawyers are keeping busy, as the number of region residents seeking protection from creditors climbed 23 percent in the first two months of 2009.Statistics for the Northern District of Indiana Bankruptcy Court showed 2,158 people filed bankruptcy, compared to 1,752 over the same period last year. Filings in 2008 also were 25 percent higher than in 2007, continuing an upward trend in the number of bankruptcy cases that began after bankruptcy requirements were made more strict by changes to federal law passed in 2005.
"The phenomenon at work is the economy," said Highland bankruptcy trustee Daniel Freeland, also a bankruptcy attorney. "People made the argument (before bankruptcy laws were reformed) that people were being irresponsible, but I don't think anyone would say that now.
"I think people were just living within their means, at the time," he said. "They've lost jobs, or they're not laid off, they lost the overtime they had been counting on." * * *
"I have never seen so many people walk away from their homes as I have in the last 18 months," Freeland said.
Posted by Marcia Oddi on March 12, 2009 08:33 AM
Posted to Indiana Courts