Increase in Bankruptcy filings in Wisconsin
Through the first quarter of 2009, bankruptcy filings are up 35 percent in Wisconsin compared to the same time period last year. Total bankruptcy filings in the Eastern District through March 31 have exceeded 4,100, which are 1,000 more than during the first three months of 2008.In the Western District, the filing increase has been more gradual with approximately 2,000 through March this year, compared to 1,500 in 2008.
The biggest jump in filings has come in Chapter 7, fueled by the collapse in the housing market and rising unemployment. Through March 31, 2009, the Eastern District received more than 3,200 Chapter 7 filings, compared to about 2,200 during that same time last year. First quarter filings in the Western District have jumped as well, with 1,770 this year, as compared to about 1,200 in the first quarter. Though the bankruptcy judges are not feeling the crunch as of now, they expect that could change in the later quarters as more businesses, both large and small, are filing for Chapter 11. This can be evidenced by the fact that in the first quarter of 2009, 42 Chapter 11 cases were filed in the Eastern District, compared to 26 for the whole of last year.
However, in the Western District, only eight Chapter 11 cases were filed in the Western District through the end of March 2009, whereas, last year, the Western District had an overall of 40 Chapter 11 filings, but only two in the first three months.
The majority of Chapter 7 cases seldom clog the court’s docket, unless there is a dispute, but the increase in Chapter 11 filings, which typically involve businesses, could lead to lengthier cases on a more frequent basis, and since these filings are more time consuming owing to the complexity involved, judges are gearing up for the worst.
Source: http://wislawjournal.com/article.cfm/2009/04/27/Courts-face-rising-tide-of-bankruptcies-Judges-gear-up-to-handle-35-increase-in-case-filings
