From Deseret News archives:
Utah's economic improvement credited for 2nd bankruptcy dip
For the 12 months ended Dec. 31, there were 20,629 bankruptcy filings in the state 6 percent fewer than the 21,917 filings in 2003, according to the U.S. Bankruptcy Court for the District of Utah.
Kelly Matthews, economist for Wells Fargo, said Utah's falling bankruptcy rate is tied to the state's economic improvement, and job gains in particular.
"The low interest rates, the stability in real estate prices and the improvement in jobs from the overall economic point of view are important," Matthews said. "If somebody starts getting in a little financial difficulty, more than likely there's some equity left in their homes."
Nationally, the total number of bankruptcy filers in 2004 will not be released until March.
Utah's bankruptcy boom peaked in 2002 with 22,052 filings, the highest number in a one-year period in the state's history.
According to the Virginia-based American Bankruptcy Institute or ABI, the top five reasons people file for bankruptcy are ease of obtaining personal credit and credit cards, loss of a job, financial mismanagement, medical problems and divorce.
In 2004, more than two-thirds of Utah filers sought protection under Chapter 7, a provision that sells off assets and erases unsecured debt, like credit cards. Less than one-third of the remaining filers fell under Chapter 13, which calls for budgeting some of the debtor's future earnings under a plan through which unsecured creditors are paid in whole or in part over a three- to five-year period.
Despite Utah's falling bankruptcy numbers, the state ranked first nationally in households per filing, with one of every 36.5 households in the state filing for bankruptcy for the 12 months ended March 31, 2004, according to the ABI. Nationally, one of every 72.8 households filed for bankruptcy protection during the same period.
A separate study by the Center for American Progress placed Utah tied with Georgia for the third-highest bankruptcy rate in 2003 on a per capita basis, with 9.2 consumer bankruptcy filings per 1,000 people.
Comments
- New designation for Clinton Museum 5:54 p.m.
- Eisenhower home oozes charm 5:54 p.m.
- RDP brings family-oriented 'Joyride II' 5:54 p.m.
- Sculptor turns scrap metal into art 5:54 p.m.
- Art canvas 5:54 p.m.
- Galleries 5:54 p.m.
- BYU exhibit evokes identity questions 5:54 p.m.
- Literary footnotes 5:54 p.m.
- Bookmarks 5:54 p.m.
- Town struggles with 'In Cold Blood' 5:54 p.m.
- Apostle's wife felt comfort in attack
- Can BYU root for (ick) Utah Utes?
- Short-handed Jazz fly past Sixers
- D-Will home for daughter
- Bench proves fruitful for Y.
- Utes excited for 'dream' game
- Born of water and the spirit
- Snowstorm hits Utah; 1 dead in crash
- GameDay in Fort Worth
- Woods Cross refinery to shut down
- SLC council OKs gay rights policies
354 - Editorial: Mormons and gay rights
199 - Senators want food tax restored
164 - Will state consider gay rights law?
148 - Letters: Strange breed in Utah
129 - Can BYU root for (ick) Utah Utes?
124 - Utes remain silent about BCS
120 - S.L. vote pending on gay protections
113 - No. 22 BYU holds off pesky Lobos
108 - Pratt pleads not guilty to sex charges
105
If you are looking for a bird on the cheap, the following specials from...
Maybe someone out there can help me understand how raising the state...
The idea that anybody else but you is capable of interpreting the...
I miss the days with Malone, Stockton and Hornacek, those guys were injured,...
Not a pretty win, but way to and yet another win BYU. I love this team....
My prayers go to this family for the loss of their fine young son. God bless...
Seriously if you want to hear the arguments of Progressives it won't be on...
Don't go out of your way or anything on reporting here. Four sentences is all...
re: So Sweet The REAL joy has returned. Utah has just tied it with TCU,...
AF, WYO, and CSU are all ranked higher than the pathetic NM.
Even at the time of the Colonies, White Christian men who owned property were...
BYU will most likely drop out of the the top 25 with this Junior high school...



You can be the first to comment on this story.