Bankruptcy court run-up ends with bang

Dee Dee Nilsen

Posted online October 16, 2005 | 11:00 pm

More than 1,300 consumers filed for bankruptcy protection in federal courts in Springfield and Joplin last week – 10 times the weekly average – to get in under the wire of new legislation.

New bankruptcy laws are effective today.

In a typical week, about 130 consumers file for bankruptcy in Springfield and Joplin. The run-up in filings is due to a new law that tests a debtor’s ability to pay off debts, making it harder to file Chapter 7 liquidation instead of Chapter 13 repayment.

Between Oct. 10–14, 870 bankruptcies were filed in Springfield, compared to 132 in mid-September. Joplin filings reached 459 for the week, up from 69 a month before.

Springfield bankruptcy attorney David M. Gaines said he has worked extra hours in the last two weeks and even took his computer home on Saturday to catch up on added filings.

“And that’s just the electronic filing part – after it’s filed, there’s more paperwork,” he said. [[In-content Ad]]