According to the American Bankruptcy Institute, personal bankruptcies increased in quantity throughout 2008. “Consumers are under great financial stress, with no immediate end in sight,” said ABI executive director Samuel Gerdano. “We expect the upward spike in personal bankruptcies to continue in 2009.” The Administrative Office of the United States Courts confirmed the number of bankruptcies rose by 32 percent to 1.06 million in 2008. In 2007, 801,840 American consumers filed for bankruptcy. “We have been monitoring the steady growth of personal BK cases,” said Robert Davies, President of www.OnlineBKmanager.com. “The good news is our dealer clients are working with lenders like Tidewater, CapOne, AmeriCredit, Wachovia and many others to offer quality sub-prime loans to these individuals.” In today’s volatile economy, sub-prime lenders see the advantage in lending to those consumers who have a fresh bankruptcy and can not file again for many years. “We have been booking fresh BK deals since the year 2000, and historically they are by far our best-performing loans,” explained Dedra Muffley of Tidewater Motor Credit. “We are looking to do away with the non-bankruptcy paper or customers who look like they are on their way down. We want the customers that have their problems behind them.” “Currently, chapter 7 bankruptcies represent over 75 percent of all cases being filed with the courts,” said Davies. “This fact contradicts previous thoughts that the 2005 law change would force more people into filing a chapter 13 over a chapter 7.” As of January 6, 2009, there are nearly 1 million open bankruptcies being processed for discharge by the United States bankruptcy courts. “In 2009 bankruptcy marketing will continue to prove its value to automotive retailers throughout the United States,” concluded Davies. Bankruptcies Awaiting Discharged By State Alaska 683 Alabama 39430 Arkansas 16981 Arizona 12310 California 77530 Colorado 11902 Connecticut 3887 Dist of Columbia 669 Delaware 2446 Florida 45958 Georgia 75055 Hawaii 1411 Iowa 4035 Idaho 3262 Illinois 46328 Indiana 32084 Kansas 9555 Kentucky 17283 Louisiana 22139 Massachusetts 9883 Maryland 14077 Maine 1785 Michigan 43560 Minnesota 10470 Missouri 22665 Mississippi 14253 Montana 1231 North Carolina 31867 North Dakota 833 Nebraska 6237 New Hampshire 2724 New Jersey 20986 New Mexico 2645 Nevada 13529 New York 33172 Ohio 50743 Oklahoma 15860 Oregon 10064 Pennsylvania 31976 Rhode Island 1882 South Carolina 14705 South Dakota 1070 Tennessee 48881 Texas 55763 Utah 7943 Virginia 26856 Vermont 1125 Washington 16326 Wisconsin 15481 West Virginia 3256 Wyoming 705 Total: 955,501
The Administrative Office of the United States Courts confirmed the number of bankruptcies rose by 32 percent to 1.06 million in 2008. In 2007, 801,840 American consumers filed for bankruptcy.
“We have been monitoring the steady growth of personal BK cases,” said Robert Davies, President of www.OnlineBKmanager.com. “The good news is our dealer clients are working with lenders like Tidewater, CapOne, AmeriCredit, Wachovia and many others to offer quality sub-prime loans to these individuals.”
In today’s volatile economy, sub-prime lenders see the advantage in lending to those consumers who have a fresh bankruptcy and can not file again for many years. “We have been booking fresh BK deals since the year 2000, and historically they are by far our best-performing loans,” explained Dedra Muffley of Tidewater Motor Credit. “We are looking to do away with the non-bankruptcy paper or customers who look like they are on their way down. We want the customers that have their problems behind them.”
“Currently, chapter 7 bankruptcies represent over 75 percent of all cases being filed with the courts,” said Davies. “This fact contradicts previous thoughts that the 2005 law change would force more people into filing a chapter 13 over a chapter 7.”
As of January 6, 2009, there are nearly 1 million open bankruptcies being processed for discharge by the United States bankruptcy courts. “In 2009 bankruptcy marketing will continue to prove its value to automotive retailers throughout the United States,” concluded Davies.
Bankruptcies Awaiting Discharged By State
Alaska 683
Alabama 39430
Arkansas 16981
Arizona 12310
California 77530
Colorado 11902
Connecticut 3887
Dist of Columbia 669
Delaware 2446
Florida 45958
Georgia 75055
Hawaii 1411
Iowa 4035
Idaho 3262
Illinois 46328
Indiana 32084
Kansas 9555
Kentucky 17283
Louisiana 22139
Massachusetts 9883
Maryland 14077
Maine 1785
Michigan 43560
Minnesota 10470
Missouri 22665
Mississippi 14253
Montana 1231
North Carolina 31867
North Dakota 833
Nebraska 6237
New Hampshire 2724
New Jersey 20986
New Mexico 2645
Nevada 13529
New York 33172
Ohio 50743
Oklahoma 15860
Oregon 10064
Pennsylvania 31976
Rhode Island 1882
South Carolina 14705
South Dakota 1070
Tennessee 48881
Texas 55763
Utah 7943
Virginia 26856
Vermont 1125
Washington 16326
Wisconsin 15481
West Virginia 3256
Wyoming 705
Total: 955,501