THE ECONOMY:

Bankruptcy filings surge in Nevada

Personal filings 38 percent higher in fourth quarter 2008 than previous year

Tuesday, April 14, 2009 | 6:57 a.m.

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Personal and business bankruptcy filings in Nevada surged in the fourth quarter, with the national recession compounding problems associated with declining home prices.

Numbers compiled by the Administrative Office of the U.S. Courts show Nevada bankruptcy filings jumped 38 percent, with 3,173 filings in the fourth quarter of 2007 and 5,132 in the fourth quarter of 2008. Nevada business filings jumped 44 percent, from 89 to 159.

Nationwide, quarterly filings increased 25 percent to 301,317, with a 38 percent increase in business filings to 12,901.

The Economic Policy Institute said the bursting of the housing bubble, which led to the foreclosure crisis and economic downturn, is likely behind the surge in bankruptcies.

Its analysis found that between 2006 and 2008, personal bankruptcies jumped 118 percent in Nevada and 15 other states with big home price declines vs. an increase of 58 percent in states without such declines.

"Since falling home prices reduce an owner’s ability to use home equity to manage financial distress and debt-related difficulties, we would expect bankruptcies to be more common in states with declining home values. The latest data show how strong that connection is,'' the institute said in a recent report. "Other factors contributing to bankruptcies include job losses, high credit card balances and costly medical expenses.''

"This finding supports the notion that people were using home equity as part of their personal safety net in times of crisis. With this option quickly disappearing, more people will be forced into bankruptcy court,'' the institute warned.

Besides Nevada, states with declines in home prices as reported by the Office of Federal Housing Enterprise Oversight were California, the District of Columbia, Florida, Michigan, Massachusetts, Arizona, New York, New Jersey, Ohio, Maryland, Minnesota, Rhode Island, Connecticut, New Hampshire and Hawaii.

The median price of homes sold in March in the Las Vegas area was $149,000, a 4.2 percent decline from February and down 39 percent from March 2008, the Greater Las Vegas Association of Realtors reported last week.

Discussion: 11 comments so far…

By neiman1

4/14/09 at 8:11 a.m.

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Personal and Business bankruptcies in Nevada soar. Retail sales fall across the nation. The Obamanation is not working and Sen. Reid just keeps marching to the same drummer.

How can we stop this insanity before we destroy this country?
By Nick

4/14/09 at 8:27 a.m.

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Bush and the republicans caused the crisis. Thanks to the republicans we will suffer for years. I will NEVER vote for republican again.
By jaesun

4/14/09 at 8:50 a.m.

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lol. get real. the american people caused it, not some polician.
By homer

4/14/09 at 9:15 a.m.

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neiman comes again with his stupidity. Eight years of uncontrolled spending,no over sight of financial institutions,denial of the warning signs of a recession while promising the econmy was in good shape.. But this nit wit thinks The 100 or so days Obama has been in office was suppose to correct over 2920 days od bush and his cronies. And of course Reid and Pelosi had no say during the Bush failed administration. As a matter of fact during the last two years of Bush's failed administration Reid,Pelosi and the Democrats could not override Bush's veto.
It really gets old reading this goof balls posts.neimna go away with your ignorant, lying rants.

jaesun, The American people had no control over a Republican who caused the biggest debt in Americas history,not to mention enabling Wall Street to steal Americans blind. Aren't Republicans supposed to be fiscal conservatives? Remember Bush was "The Commpassionae Conservative", among hundreds of other lies.The Republican Party is not the Republican Party of your grandfathers.
By homer

4/14/09 at 9:17 a.m.

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neiman does what his heros Rush,O Reilly, Hannity and a host of other lying nazi's do and that is if the truth won't work make up a lie and continue telling it, maybe someone will believe you.Disgusting little minds.
By homer

4/14/09 at 9:22 a.m.

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Bush thanks for your lying war that cost trillions of dollars and more importantly thosands of brave american lives not to mention tens of thousands of maimed Americans. Of course these neo cons could care less about the millions of Iraqi's that were killed and maimed who did nothing to harm one American. Thanks Bush and neiman for more lies.
By KillerB

4/14/09 at 10:44 a.m.

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"Other factors contributing to bankruptcies include job losses, high credit card balances..."

A good discussion on this is happening elsewhere, courtesy of the Sun: http://www.lasvegassun.com/news/2009/apr...

If anyone in Big Finance is paying attention they've got to be realizing the flock has been fleeced to its limits.
By jaesun

4/14/09 at 10:55 a.m.

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homer, i didnt realize it was only republicans that bought houses they couldn't afford, and maxed their credit cards. only democrats stayed away from that type of thinking and spending huh?

or are you just that naive?
By felix28

4/14/09 at 11:07 a.m.

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homer, thanks for your words. Myself, along with many others are sick of neiman's one note rants. Must say they do provide a good laugh.
By Bertsos

4/14/09 at 11:57 a.m.

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Let's see........bush's war at $10 billion a month (off the budget books also!).....for 6 years 1 month is 73 months at $10bil per = $730 billion dollars!!!!

All thw while cutting taxes, especially for the rich and big business, meant less government revenue to pay for bush's personal war.

Now there's some real fiscal responsibility!!!!

bush was/is a stupid mother fu**er
By jaesun

4/15/09 at 11:17 a.m.

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oh yes, the war caused the housing bankruptcy. that's a good one