If you are considering filing for bankruptcy in Washington State, you will not be alone. The Seattle area is bucking the national trend in which bankruptcy filings are on the decline. According to the statistics on hand with the Western District of Washington Bankruptcy Court, bankruptcy filings seems to be on the rise in 2011 when compared to the number of filing in 2010. The numbers indicate that through the month of May, the Seattle area had 5187 chapter 7 bankruptcy filings in 2011 compared with 4982 in 2010. Filings in the Tacoma area have dipped slightly with 3504 filings through May in 2011 vs. 3671 chapter 7 bankruptcy filings in 2010.
There could be several reasons why the number of bankruptcy filings nationally has decreased, which include a reduction of the national unemployment rate, foreclosures taking longer to be processed, and a reduction in available credit. I believe that bankruptcy filings in the Seattle area continue to rise due to the affects of the poor economy hitting the region later than in most areas of the county. Debtors in Seattle have held out longer to file, but now they are realizing that they need to file in order to save their homes or be able to pay their living expenses. In my opinion, I believe the current pace of bankruptcy filings will last through the end of the year. The filing rate may eventually go down, however if one thing is certain, there will always be debtors overextending themselves and getting into debt problems. Therefore there will always be a need for bankruptcy law firms in order to help those in need seek relief under the United States Bankruptcy Code.
2014 UPDATE: Since this post in 2011, bankruptcy filing were on the rise, however 2014 compared to filing in 2013 are down about 15-20% so in my opinion bankrupt filing are probably now back to normal levels and should continue to be on pace with 2014 moving forward.
If you have additional questions and need to consult with a bankruptcy attorney call Symmes Law Group at 206-682-7975