CALIFORNIA BUSINESS MINUTE
Bankruptcy in California
07-22-10
Hi, I am Tim Johnson and welcome to the California Business Minute.
According to the U.S. Bankruptcy Court, California ranks among the highest of states
with people filing for bankruptcy per resident. The numbers track the 12 months ending
March 2010, during which time there were a record number of bankruptcy filings. The
Golden State ranked eighth out of the top ten states, with 6.15 filings for every
1,000 residents. Not surprisingly for the nation's most populous state, California
also had the largest sheer number of filings of any state at an estimated 227,000
filings.
The bankruptcy filing numbers include both individual and business filings, of all
types. The state with the highest per-resident number of bankruptcy filings was
Nevada with 11.7 bankruptcy filings for every 1,000 residents.
Nationwide, last year's data showed the highest number of filings since the year the
bankruptcy reform law went into effect, with 1.47 million consumer filings and 61,148
business filings. Total filings rose 27% over the previous 12 months (those ending
March 31, 2009). The biggest jump was a 65% increase in Chapter 12 bankruptcies over
the 2008-2009 filings, which are for family farms and fishermen. But Chapter 7 consumer
bankruptcies increased by 30% and Chapter 13 filings increased by 12%.
TOP TEN STATES FOR BANKRUPTCIES PER CAPITA
1. Nevada, 11.7 bankruptcy filings per 1,000 residents
2. Tennessee, 8.55
3. Georgia, 7.80
4. Indiana, 7.62
5. Alabama, 7.42
6. Michigan, 7.11
7. Ohio, 6.26
8. California, 6.15
9. Illinois, 6.04
10. Kentucky, 6.03
California led U.S. states in small business bankruptcy in the first quarter of 2010,
with Los Angeles, Riverside and Sacramento metro areas bearing the brunt of the trend,
a recent report.According to the report released by Equifax analyzing national bankruptcy
trends by metropolitan statistical areas (MSA), Los Angeles-Long Beach-Glendale had
the most bankruptcies and saw a 15 percent increase rising from 899 to 1035, a 15
percent increase from the last quarter, as the MSA with the most bankruptcies among
the nation's top 15 MSA's.It was followed by Riverside-San Bernardino-Ontario, which
saw an 11.01 percent, then by Sacramento-Arden-Arcade-Roseville with 12.99 percent.
Ranking in fifth, San Diego-Carlsbad-San Marcos saw an increase of 12.17 percent.
TOP TEN MSA’s FOR SMALL BUSINESS BANKRUPTCIES 1stQTR10
1. Los Angeles-Long Beach- Glendale
2. Riverside- San Bernardino- Ontario
3. Sacramento-Arden Arcade-Roseville
4. Houston-Sugarland—Baytown, TX
5. San Diego- Carlsbad- San Marco
6. Portland-Vancouver-Beaverton, OR/WA
7. Denver-Aurora, CO
8. Santa-Ana-Anaheim-Irvine
9. The Rest of California
10. Phoenix - Mesa-Scottsdale, AZ
I am Tim Johnson and this has been the California Business Minute.
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