Bankruptcy filings highest in Nevada
In 2008, the Laub and Laub Law Firm had one attorney in its bankruptcy department – in 2009, there are now 11, said Joe Laub, owner of the Reno-based law firm.
There’s a reason for the increase. Nevada led the nation in bankruptcy filings during the last fiscal year, according to a recent report from the Administrative Office of the U.S. Courts.
The Silver State reported 10.49 bankruptcy filings per 1,000 people from Oct. 1, 2008 through Sept. 30, 2009, more than twice the national rate of 4.52 filings per 1,000 people. Following Nevada were Tennessee, at 8.67 per 1,000, and Georgia, at 7.52 per 1,000.
“No one is immune to this economy,” Laub said. “It has affected everyone.”
Nationwide, bankruptcy filings climbed 34.5 percent compared to the 2008 fiscal year, according to the report issued last week.
In Nevada, that increase was 64.5 percent, with 27,560 bankruptcy filings this year, up from 16,756 in 2008.
Bankruptcy filings at the U.S. Bankruptcy Court in Reno increased in 2009 to 3,892, up from 2,602 in 2008, a nearly 50 percent increase.
Laub said in November his law firm handled 61 bankruptcy cases and in October, 64. The primary driver behind the bankruptcies is the economy as well as debilitating mortgage and credit card payments, he said.
“And with them getting a pay cut or losing their job, they no longer have the ability to pay their mortgage payments or pay their basic monthly expenses,” Laub said.