Bankruptcies soar in Las Vegas, nationwide

Friday, July 13, 2001 | 11:17 a.m.

A weakening economy and the anticipated passage of a bankruptcy reform bill in Washington caused a spike in the number of individuals filing for bankruptcy in the first quarter, according to an analysis of federal statistics.

The number of personal and business bankruptcies in the quarter ended March 31 was the highest recorded since June 1998, according to statistics from the Administrative Office of the U.S. Courts.

There were 366,841 bankruptcy filings in the first quarter, according to the administrative office. The figure represented an 18 percent increase from the period a year earlier. Much of that increase came from individuals filing for Chapter 13. Such filings were up 21 percent.

Meanwhile, the U.S. Bankruptcy Court in Las Vegas saw a 38 percent rise in filings this year through May 31 over the same period last year, said Patricia Gray, Clerk of Court.

"Some 5,579 cases were filed in the first five months this year. Our next largest year was 1998. About 4,722 cases were filed at the end of May 31, 1998," she said. "This year's case filings started rising significantly in March. We've had a 60 percent increase from February. Normally there is an increase in March each year but it usually averages about 25 percent."