LOCAL ECONOMIC SNAPSHOT | INSOLVENCIES

Mapping bankruptcy declines

By AUDREY WHITE
Staff Writer awhite@dallasnews.com

Bankruptcy filings dropped 12 percent or more in most categories in the first half of the year compared with the first half of 2011. Bankruptcy statistics provide a rearview mirror of the economy low filings show 18 months ago, people distrusted the economy and were not taking on debt. However, they may also help reiterate which states were hit worst by the recession.

Total filings, U.S.

Total bankruptcy filings are down 14 percent in the first half of 2012 compared with the same period in 2011. They are still up significantly from the same period in 2006.
(All numbers are for the first six months of the year) In thousands
800 700 600 500 400 300 200 100 0

Total filings, Northern District of Texas

Filings in the Northern District of Texas dropped less than 1 percent. Dallas County creates the southeast corner of the district, which covers the central and northern part of the state, including Amarillo. They are still close to double the filings in the same period in 2006.
(All numbers are for the first six months of each year) In thousands
12 10 8 6 4 2

632,130

9,102

2006

2007

2008

2009

2010

2011

2012

2006

2007

2008

2009

2010

2011

2012

U.S. personal filings

Total noncommercial filings (usually filed by individuals) dropped 13 percent in the first half of 2012 compared with the same period in 2011.
(In thousands) 800 700 600 500 400 300 200 100 0 06 07 08 09 10 11 12

U.S. business filings

Commercial filings (filings by businesses and legal entities) dropped 22 percent in the first half of 2012 compared with the same period in 2011.
(In thousands) 50

Chapter 11 filings, U.S.

Chapter 11 bankruptcy filings (filed by a business or individual that will keep the business or assets) dropped 12 percent in the first half of 2012 compared with the same period in 2011.
(In thousands) 10 8 6 4 2 0

600,895

31,000
40 30 20 10 0 06 07 08 09 10 11 12

5,323

06

07

08

09

10

11

12

Comparing the states

States where bankruptcy filings soared going into the recession (2007-2008) are falling the fastest now (2011-2012): -30% to -20% 2008 over 2007
Percentage increase or decrease

-19% to -10%

-9% to -1%

1 to 9%

10% to 19%

20% to 29%

30% to 50%

Over 50%

2012 over 2011

Percentage increase or decrease

South Carolina -3% California 82% Wyoming -7% Texas 7% Nevada -27% Texas -6%

The bottom line

People become indebted when theyre engaged in economic activity buying homes, buying cars, starting businesses. When all of those things pull back, yes they are less vulnerable to need bankruptcy protection. Samuel Gerdano, executive director of the American Bankruptcy Institute Texas didnt suffer as much as other jurisdictions. So it makes sense that it doesnt appear that were recovering as much during the post recession slump. Lower bankruptcy filing figures dont tell us anything about the future. As consumer confidence increases, it will be important to see if personal debt starts to climb.

Mechele Dickerson, bankruptcy expert, University of Texas School of law

Audrey White, staff writer, The Dallas Morning News