Extension and Ag Research News

Accessibility


N.D. Bankruptcy Cases Down

North Dakota’s trend in bankruptcy filings has followed the national pattern of change.

North Dakota bankruptcy cases filed in federal court totaled 1,090 in fiscal year 2007 (the 12-month period ending Sept. 30, 2007). That number is down 37 percent when compared with the 1,726 filings in fiscal year 2006. Nationwide, bankruptcy filings dropped abruptly during 2006 after implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005.

On April 20, 2005, President Bush signed into law the BAPCPA, which made substantial changes to the bankruptcy code. For more information on the BAPCPA, visit http://www.usdoj.gov/ust/eo/bapcpa/.

This month’s “Economic Brief,” a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on the number of bankruptcy cases filed by state as reported by the Administrative Office of the U.S. Courts.

“There has been an ebb and flow in bankruptcy filings during the past 25 years,” said Richard Rathge, State Data Center director.

In fiscal year 1987, North Dakota bankruptcy filings were at 1,148. The number of filings dramatically rose during the latter half of the 1990s. Filings reached a peak in 1998 at 2,157. After minimal change in bankruptcy filings in the early 2000s, the number of filings rapidly rose to 2,878 in year 2005. The implementation of the BAPCPA produced a sharp drop in filings in fiscal year 2007 to 1,090.

North Dakota’s trend in bankruptcy filings has followed the national pattern of change. Nonbusiness filings, the majority of North Dakota bankruptcy cases, totaled 1,032 in fiscal year 2007, down from the 1,673 nonbusiness filings in 2006. Business filings for North Dakota totaled 58 in 2007, up five from the business filings in 2006.

A look at bankruptcy filings for different 12-month periods shows that although filings for the period ending Sept. 30, 2007, remain well below pre-BAPCPA levels, total filings are increasing. For the 12-month period ending Dec. 30, 2006, North Dakota bankruptcy filings totaled 743. Filings had been rising steadily each quarter to reach 1,090 for the 12-month period ending Sept. 30, 2007.

“This increase is occurring despite a robust economy in North Dakota that is largely fueled by the state’s energy production and favorable crop prices,” Rathge said.


NDSU Agriculture Communication

Source:Richard Rathge, (701) 231-8621, richard.rathge@ndsu.edu
Editor:Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu

Attachments

Creative Commons License
Feel free to use and share this content, but please do so under the conditions of our Creative Commons license and our Rules for Use. Thanks.