Napa County Sees Decline in Chapter 7 Bankruptcy Filings

Written by CFB Blogger. Posted in Blog

When you think of Napa, California, you most likely think of the delicious pinot noirs and chardonnays that stem from one of best the wine-producing areas in the country. This report, however, focuses on the number of Chapter 7 and Chapter 13 bankruptcies filed in Napa County as well as surrounding counties in California. Napa bankruptcies filed last year fell to the lowest levels in five years, according to recent data from the U.S. Bankruptcy Court in Santa Rosa [California]. Two hundred ninety-six residents declared bankruptcy in 2013, a 22.7% decline from 383 bankruptcy filings filed the previous year. That figure was significantly lower than the record high of 658 bankruptcy filings in 2010. In an article appearing in the Napa Valley Register, penned by Jennifer Huffman, one U.S. Bankruptcy Judge stated, “’Either the economy is finally getting better or we’ve run out of people to file bankruptcy. I think it’s the former.’” The jurist averred that he feels most of the bankruptcy cases are a result of the recent real estate crisis. During the height of the recent recession, thousands of Napa County residents were in danger of losing their homes to foreclosure, forcing many to file for personal bankruptcy. He added that since home prices are currently experiencing an upturn, “’more people are finding more ways outside of bankruptcy to deal with their financial problems’”. During the recession, many homeowners who were facing foreclosure filed Chapter 13 bankruptcy, which can help prevent the loss of a home as well as other assets, while they repay their creditors over a three-to-five year period via a bankruptcy court-approved plan.  There were 73 Napa County Chapter 13 bankruptcy cases filed in 2013, compared to 109 in 2012. In Napa County, there were 219 Chapter 7 bankruptcy cases filed in 2013, compared to 268 in 2012. In a Chapter 7 bankruptcy, most debt is expunged but filers must liquidate most of their assets in an attempt to repay creditors. The total number of cases for the Santa Rosa bankruptcy court division declined from 3,510 to 2,492 in 2013 as compared to 2012. Santa Rosa division includes Napa and six other North Coast counties. A so-called average year would see 1,800-2,000 bankruptcy cases, the judge said. Other California counties that experienced declines in bankruptcy filings include Sonoma County, where there were 1,262 bankruptcy cases filed in 2013, compared to 1,789 in 2012. In Marin County, there were 389 cases filed in 2013 and 594 in 2012. In Lake County, 153 bankruptcies were filed in 2013 compared to 223 in 2012. One bankruptcy attorney stated in the article that residents who are currently seeking bankruptcy protection are looking for help for their serious financial problems. They may be being sued by a credit card company, may have been served with a wage garnishment, facing a lien on their home or having a bank account levied. Hopefully, a gradually improving economy as well as the implementation of the new national health coverage law [Obama-care] will bring about fewer bankruptcies. If, however, you and your family are still facing insurmountable debt from whatever cause, you simply must get assistance from one of the most well-thought-of bankruptcy law firms in the U.S. Wherever you live, if you are contemplating filing Chapter 7 or Chapter 13 personal bankruptcy, call the Client First Bankruptcy law experts. Our experienced bankruptcy attorneys are available for mini-phone consultations Monday through Friday from 8:30 a.m.-6:00 p.m. Central Time to answer your financial debt questions. Call us toll-free at 800-383-6004. The skilled Client First Bankruptcy professionals have experience in all aspects of Chapter 7 and Chapter 13 bankruptcy relief.  Our compassionate lawyers and support staff have helped thousands of clients eliminate their crushing debt, including reducing principal balances on underwater second mortgages.  Client First Bankruptcy offers flexible payment plans; we will work within your budget to help you repair your credit and your financial life. Log onto www.clientfirstbankruptcy.com for important bankruptcy info. Let’s talk and see if our skilled bankruptcy pros can help you realize a more secure financial future.