Bankruptcy Spikes in South Texas
South-Central Texas saw a drastic rise in personal bankruptcy reorganizations filed, this recent month showing an increase in 35 percent over last year.
The U.S. Bankruptcy Court reported 280 cases of Chapter 13 filings in the last month alone. September 2009 held 208 reports of Chapter 13 filings, and 222 for August. This September held 453 total bankruptcy filings, 12% over the year before which held 403 filings, and 440 for August. Chapter 13 bankruptcies are personal bankruptcies which allow the debtor to reorganize their debt, and establish a repayment plan with the creditor.
The number of Chapter 7 liquidation reports dropped roughly 13%, at 164 this September in comparison to 189 a year prior and 211 for August. Nearly all Chapter 7 filings were reported as personal bankruptcies. Chapter 7 bankruptcies are usually for those past the point of possibly reorganizing, and must thusly sell off any and all non-exempt assets, which then go directly to paying the creditors.
The number of Chapter 11 bankruptcies reported rose 50% from last year, at 9 this September, compared to 6 last September. August held 7 reports of Chapter 11 cases. Chapter 11 bankruptcies are more immersive than Chapter 7 reports and are usually for businesses and organizations. Chapter 11 allows the organization to reorganize its debt, possibly to re-surface as a healthy organization.
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