Filings rose 4.25 percent to 1,324 in 2011 from 1,270 in 2010, the data show. Although the total number of filings is higher, the percentage change was not nearly as extreme as it was from 2008 to 2009 when filings rose 37.6 percent to 1,152 from 837.
That increase likely can be tied to the recession after the economy plunged in fall 2008.
Of the total filings in 2011, 1,021 were Chapter 7 filings, followed by 298 Chapter 13 and five Chapter 11 flings, the data show. A Chapter 7 bankruptcy is considered a straight liquidation, while Chapter 11 typically is filed by a corporation looking to restructure its debt. Chapter 13 usually involves some sort of repayment plan.
Olympia bankruptcy attorney Jennie Patton, however, was surprised that filings had increased in Thurston County because activity at her office has slowed and has slowed for her colleagues as well, she said. Although slower, that doesn’t mean that good times are back.
“I’m not ready to say the economy is improving,” she said, adding that people still are dealing with unemployment, falling home values and unsecured debt, such as credit card debt.
And once the new year begins, she starts to receive phone calls from people inquiring about the bankruptcy process. Some incur too much debt over the holidays and some realize their IRS tax return isn’t going to tie them over like they thought it would.
“They realize the seriousness of the situation and I get calls at that point of time,” she said.
Meanwhile, Pierce County personal and business bankruptcies fell in 2011 from 2010, likely a welcome bit of economic news for the county after it battled plunging home values and high unemployment for most of the year.
Bankruptcies in Pierce County fell 3.6 percent to 4,840 filings in 2011 from 5,025 filings in 2010. Although bankruptcy filings trended in the right direction, the 2011 totals were still more than the 4,428 bankruptcies in 2009, the data show.
From 2008 to 2009, filings in Pierce County soared 44 percent to 4,428 from 3,076, likely because of contributing factors tied to the economic meltdown in fall 2008.
Of those 4,840 filings in 2011, 3,616 were Chapter 7 filings, followed by 47 Chapter 11 filings, one Chapter 12 filing and 1,176 Chapter 13 filings.
Total bankruptcy filings in the Western District also fell in the year-over-year period, down 4.4 percent to 25,690 from 26,887, the data show. The Western District covers all of Western Washington.
