The Central District of California includes San Luis Obispo County, Santa Barbara County, Ventura County, Los Angeles, Orange County, San Bernardino County, and Riverside County. Within the Central District Jurisdiction, there were 5,607 total bankruptcy filings last month, March 2014.
Out of all the California Districts (Northern, Southern, Eastern, Central), the Central District of California had the most bankruptcy filings. It is speculated that the Central District may have experienced the deepest impact of distressed real estate situations and economic recession effects. While the recession is long gone, bankruptcy filings are still being utilized to recover from the effects of it.
In the Central District, 971 of the 5607 filings were Chapter 13 filings. Chapter 7 filings, the most common type of consumer bankruptcy filing, were at 4,573 in March 2014. Over 21% of the bankruptcies filed in Central District were Chapter 13 filings. This number is significant because it shows that 21% of the bankruptcies filed were by people who have enough expendable income to qualify for Chapter 13 bankruptcy. Chapter 13 bankruptcy requires filers to be able to maintain minimum debt payments and continue to repay past due debt over a maximum period of 5 years. We can see here that 1/5th of people filing bankruptcy have returned to an income level where their debt is manageable, but may have experienced past due debt over the recent past years/months.
Bankruptcy is not only for those who are completely out of income of financial resources. Chapter 13 bankruptcy can help you file bankruptcy on secured debt by placing past due debt in a payment plan.
If you are located in San Luis Obispo County, Santa Barbara County, Ventura County, Los Angeles, Orange County, San Bernardino County, and Riverside County and are still recovering from the impact of recession, you are not alone. 4,573 Chapter 7 cases and 971 Chapter 13 cases were filed just last month in these areas.
Bankruptcy Law Professionals is a Bankruptcy Law Firm located in Southern California with offices in Orange County and Riverside County. We offer free bankruptcy consultations to all of our clients. Contact us at 855 257-7671 to schedule an in-person or phone consultation.