Though bankruptcies across the country fell in April, they were still at the second-highest level since 2005. Nationwide there were 146,000 bankruptcy filings by individuals and businesses in April, down from 158,000 in March.
The news isn't as good here in Arizona, however, as bankruptcies across the state continue to rise from last year's already inflated rates. In the past year, the number of Chapter 7 and Chapter 13 bankruptcies in Arizona increased by more than 35 percent.
The United States Bankruptcy Court, District of Arizona, divides the state into three regions, Phoenix, Tucson and Yuma. The bankruptcies in the state were particularly concentrated in the Phoenix area, including Apache County, Coconino County, Gila County, Maricopa County, Navajo County and Yavapai County.
In this area, the number of bankruptcies rose more than 40 percent in the month of April, as compared to a year ago. There were 2989 bankruptcy filings in April of this year, compared with 2107 a year ago and just 1104 bankruptcies in April of 2008.
Phoenix Area Bankruptcies
Naturally, densely populated Maricopa County dominated the Phoenix-area filings with 2,762 in April. Maricopa includes Apache Junction, Avondale, Chandler, El Mirage, Glendale, Goodyear, Litchfield Park, Mesa, Peoria, Phoenix, Scottsdale, Surprise, Tempe and Tolleson, as well as the towns of Buckeye, Carefree, Cave Creek, Fountain Hills, Gila Bend, Gilbert, Guadalupe, Paradise Valley, Queen Creek, Wickenburg and Youngstown.
Elsewhere the sheer numbers are smaller, but the numbers are still on the rise.
- In Gila County, including the towns of Globe, Hayden, Miami, Payson, Star Valley and Winkelman, the number of bankruptcies has more than doubled in the past year, from 16 filings in April of 2009 to 40 in April of this year.
- The towns of Flagstaff, Sedona, Williams, Fredonia and Page, comprising Coconino County, have also witnessed a significant rise in filings. Last year, there were 26 bankruptcy filings in the county, while this year the number has risen to 40.
- In Navajo County, including Holbrook, Show Low and Winslow, the filings increased nearly 75 percent, from 20 filings in April of 2009 to 34 filings in April of 2010.
In contrast to these drastic increases, Apache County and Yavapai County both remained fairly stable.
- In St. Johns, Eager, and Springerville, the towns in Apache County, there were just eight bankruptcy filings this April, in comparison to seven last April.
- Yavapai County experienced a slight increase, from 105 in April 2009 to 111 in April 2010.Yavapai County includes Cottonwood, Peoria, Prescott, Sedona, Camp Verde, Chino Valley, Clarkdale, Jerome and Prescott Valley.
However, even these numbers represent a significant increase over past trends. In April 2008, Yavapai County only had 57 bankruptcy filings, and Apache had just three.
A Breakdown by Type: Chapter 7 versus Chapter 13
A closer look at the Phoenix numbers shows Chapter 7 liquidation bankruptcies were up to 2,508 in April of this year, a rise of more than 40 percent over those of last year. Chapter 13 bankruptcies indicated a similar trend, as they were up slightly more than 40 percent as well.
Considering Bankruptcy? Speak With A Bankruptcy Attorney First
If you are considering bankruptcy, contact an Arizona bankruptcy lawyer who can assess your situation and guide you through the Chapter 7 liquidation bankruptcy or Chapter 13 reorganization bankruptcy process.
