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NewsTalk

Welcome to the archives for NewsTalk, an IBJ blog published from November 2007 through December 2010.

Bankruptcies booming again

April 14, 2009
Bad times have Hoosiers filing lots more personal bankruptcies, right in synch with a national trend.

U.S. Bankruptcy Court for the Southern District of Indiana, which includes Indianapolis, logged 2,936 bankruptcies last month. That was a heady increase from a year earlier and nearly three times the level of 2006, when federal law was changed to make filing more difficult.

Indianapolis bankruptcy attorney Mark Zuckerberg noticed a marked uptick in January. People hoped for a good Christmas, then at the start of the year were hit with bills, bad economic news and other realities.

Most have lost jobs and their health insurance, Zuckerberg says. As a result, a medical problem tips them into bankruptcy.

Contractors and mortgage brokers are still suffering from the housing bust, and restaurant owners are fighting a downturn in business.

Many have exhausted retirement accounts or their life insurance policies, Zuckerberg says. “It’s filtering down. They’re running out of cash.”

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