Pearson, Butler, Carson & Cook, PLLC, hires more attorneys as the rate of Utah bankruptcy petition filings hit a 6 year high. Year 2011 had 18,414 petitions compared to 17,968 in 2010, which is a 2% increase in Utah bankruptcy petitions being filed.
Homeowners threatened with foreclosure and individuals and families stressed with creditor harassment continue to consider Chapter 7 and Chapter 13 as options. Similarly, business owners frustrated with tighter business operating margins look to Chapter 11 business bankruptcy as a way to force commercial lenders to offer more favorable terms to keep their businesses open.
"I know that there is talk about the economy improving, but I am not seeing any sign that things are improving," said Len Carson, a Salt Lake City bankruptcy attorney at Pearson, Butler, Carson & Cook, PLLC. "What I am seeing are individuals and families who file Chapter 13 bankruptcy petitions in the hopes that they can repay their missed mortgage over a 5 year period. Others are using Chapter 7 as a way to liquidate their debt because they are fed up with the stress."
In 2011, the US Bankruptcy Court District of Utah had 18,414 bankruptcy petitions filed. That's still higher than 2010 when 17,968 Utah debtors filed bankruptcy petitions.
"I see this year (2012) being higher than last year. Until homeowners get some additional assistance from lenders through modifications or other mortgage relief, Chapter 13 petitions will continue to be filed," added lawyer in Utah Len Carson.
Utah Chapter 11 business bankruptcy attorneys filings are also up. Attorney Clawson explains the trend, "Only 22 Chapter 11 business bankruptcy petitions were filed in the US Bankruptcy Court of Utah in year 2006, compared with 90 Chapter 11 petitions filed in 2011."
Time will tell, as will the economy. The first quarter of YR 2012 shows several more petitions being filed by Utah bankruptcy attorney firms. The only way to see less people file is to see more people keep employed and pay their creditors.