Decrease in bankruptcy filings recorded in second quarter
Continuing a trend that began last year, bankruptcy filings declined in Las Vegas during the second quarter.
The 7,781 cases that originated during the quarter marked a 24.9 percent drop from a year ago, as all of the categories went down, U.S. Bankruptcy Court records show.
The steepest fall came in Chapter 13 repayment plans for individuals, down 38 percent to 1,371. At the current pace, the number of Chapter 13s would run less than half of the 6,008 recorded two years ago.
Chapter 7 liquidations for individuals and companies were down 21.5 percent to 6,250 cases, and Chapter 11 reorganizations for companies or individuals with large debts fell 18 percent to 159.
Typically, bankruptcy filings have flowed in cycles that follow the general economy and taper off as a recession recedes. In addition, bankruptcy attorneys said the lull in foreclosures that began when the state instituted new documentation laws for lenders has reduced the need for people to seek bankruptcy to try to save their homes.
Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.
