In the Middle District of North Carolina, there was a decrease of approximately 4.6% – there were 7,170 filings in 2010, compared to the 7,521 filings in 2009. The Middle District of North Carolina includes Winston-Salem, Greensboro, and Durham (and areas in between).
Within the Middle District of North Carolina, cases for bankruptcy in Greensboro, NC were down 4.9%. In 2010, there were 2,389 cases, compared to 2,513 in 2009.
Cases for bankruptcy in Winston-Salem, NC (also in the Middle District) were down 8.6% in 2010, with 2,430 cases filed compared to 2,660 in 2009.
On the other hand, in the Western District of North Carolina, there was an increase in bankruptcy filings of approximately 2.5% in 2010. The Western District of North Carolina includes Asheville, Bryson City, Charlotte, Shelby, and Wilkesboro (and areas in between).
While it is surprising that there is such a difference in the bankruptcy filing trends between two areas that are so geographically close, there are likely reasons for the difference. For example, the job market may be slightly improving in the Middle District while there may be no improvement in the Western District. Additionally, the housing market trends may be more positive in the Middle District areas while there may be ongoing housing difficulties in the Western District cities and towns.
If you are in the Greensboro, Winston-Salem, or High Point areas and are considering filing bankruptcy, contact Duncan Law for a free, no strings attached consultation to learn more.
The decline in the national economy is reflected by an increase in personal bankruptcy filings in 2010. However, in North Carolina, bankruptcy filings increased in some parts of the state while they decreased in other areas of the state.
In 2010, national filings were up 9% from 2009. In 2010, there were 1,530,078 consumer bankruptcy filings, an increase from the 1,407,788 consumer filings in 2009.
At the local level across North Carolina, the number of bankruptcy filings in 2010 varied.
In the Western District of North Carolina, there were 8,450 new bankruptcy filings in 2010, up from the 8,238 filings in 2009 – an increase of approximately 2.5%. The Western District of North Carolina includes Asheville, Bryson City, Charlotte, Shelby, and Wilkesboro (and areas in between).
Specifically within the Western District of North Carolina, bankruptcy cases filed in Charlotte, NC were up approximately 5.7% in 2010, with 3,839 cases filed. In 2009, there were 3,631 new bankruptcy cases filed in the Charlotte division. These numbers reflect the ongoing financial difficulties that families are facing in the Charlotte area. Many of these bankruptcy filings were a direct result of a job loss or pay cut.
Why the difference in two sections of the state so geographically close? It is likely because of the varying job availability and varying housing markets. The housing markets are different from county to county. While people in the Charlotte area may be choosing to file Chapter 13 bankruptcy to stay in their homes and avoid foreclosure, the trend in Greensboro may be to not try to save the home and to instead surrender the home and later file bankruptcy. However, folks in the Greensboro area who are simply walking away from their homes will eventually be harassed and possibly sued by the mortgage company for any remaining balance due on the home. At this point, those individuals will need to file bankruptcy to eliminate their responsibility on the debt.
If you are in the Charlotte area and are considering bankruptcy, contact Duncan Law for a free, no strings attached consultation to learn more.