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North Dakota Bankruptcy Cases Up in 2008

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

North Dakota bankruptcy cases filed in federal court totaled 1,330 in fiscal year 2008 (12-month period ending Sept. 30, 2008). This number is down significantly from the early 2000s, yet up 22 percent when compared with the 1,090 filings in fiscal year 2007.

Nationwide, bankruptcy filings dropped abruptly during 2006 after implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). On April 20, 2005, President Bush signed into law the BAPCPA, which made substantial changes to the bankruptcy code (most provisions took effect in October 2005). 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.

North Dakota’s trend in bankruptcy filings has closely followed the national pattern of change. In fiscal year 1987, North Dakota bankruptcy filings totaled 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 a minimal change in bankruptcy filings in the early 2000s, the number of filings rapidly rose to 2,878 in 2005.

From 2007 to 2008, all but two states experienced an increase in bankruptcy filings. Bankruptcy cases in Montana and Wyoming dropped 2 percent and 1 percent, respectively.

Nationally, the number of bankruptcy cases filed in federal court grew 30 percent during this time.

“What is troubling is that, in spite of North Dakota’s robust economy, the state’s upward trend in bankruptcy cases is similar to that of the nation, which is struggling with the current recession,” says Richard Rathge, State Data Center director.

Nonbusiness filings, the majority of North Dakota bankruptcy cases, totaled 1,270 in fiscal year 2008, which was up from the 1,032 nonbusiness filings in fiscal year 2007. Business filings for North Dakota totaled 60 in fiscal year 2008, up from the 58 business filings in fiscal year 2007.


NDSU Agriculture Communication

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

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