California bankruptcies continue to decline.

California Bankruptcy Filings Continue Downward Trend

According to the United States Bankruptcy court, the number of people filing bankruptcy in California continues to decline from the peak established in 2010.  A lot of recent reports have mentioned the steady improvement of the nations economy.  Based upon the California bankruptcy numbers, it definitely seems like the California economy is improving, as fewer and fewer people have filed for bankruptcy protection over the last couple of years.

As you can see from the numbers, the Central bankruptcy district of California was especially hard hit during the down economy, as bankruptcy filings climbed from 58,636 in 2005 to a peak of 146,352 in 2010.  The Central bankruptcy district has jurisdiction in the seven-county region, comprised of Los Angeles County, Orange County, Riverside County, San Bernardino County, Santa Barbara County, Ventura County, San Luis Obispo County.  The Eastern district bankruptcy court was also busy

The most common type of personal bankruptcy is Chapter 7, which is a “liquidation” process that typically results in a bankruptcy trustee selling the petitioners assets and dispersing the funds to creditors of record.  Although there are bankruptcy exemptions that allow those filing chapter 7 to retain some of the personal property and assets.  The chapter 7 bankruptcy code does require petitioners to complete a certified bankruptcy credit counseling course before their bankruptcy can be finalized.

Below are the bankruptcy filings in California from 2004 through 2012 according to http://www.uscourts.gov/Statistics/BankruptcyStatistics/

Northern Bankruptcy District Central  Bankruptcy District Eastern  Bankruptcy District Southern   Bankruptcy District
2012 25,610 97,062 33,965 16,025
2011 33,379 128,145 46,192 20,669
2010 38,926 146,352 55,023 23,710
2009 35,692 119,134 50,609 21,911
2008 23,720 75,482 35,623 15,645
2007 14,211 39,137 20,970 8,988
2006 9,059 21,869 11,446 5,342
2005 25,662 72,354 32,054 13,634
2004 21,353 58,636 21,353 11,003