Washington ranked second among the states, behind New Jersey, in the rate of growth in bankruptcy filings from December to January, according to AACER, an Oklahoma City-based bankruptcy data and management firm.So much for New Year cheer.
Washington ranked second among the states, behind New Jersey, in the rate of growth in bankruptcy filings from December to January, according to AACER, an Oklahoma City-based bankruptcy data and management firm.
More than 1,900 households and businesses declared bankruptcy across the state last month, court statistics show.
While the state notched only a 3 percent increase in filings after the holiday season, almost every other state saw bankruptcy filings drop in January, AACER data show.
It's too early to tell if the state's position will hold, but last month it also moved in the average monthly increase in filings (ninth) and in filings per capita (20th).
Consumer bankruptcies rose sharply in the Seattle and Tacoma areas, where over the past year unemployment rates roughly doubled and housing sales activity plummeted.
King County led the state, with more than 60 percent growth in bankruptcy filings over the previous January, well above the 38 percent average annual growth of the previous 12 months. There were 412 bankruptcy filings in King County last month.
Other urban counties had major annual increases as well: Thurston County recorded 56 filings, a 56 percent jump; Pierce County, 277 filings, up 53 percent; and Snohomish County, 222 filings, up 42 percent.
More businesses are seeking protection from creditors, too. In Western Washington, there were 63 businesses that filed for bankruptcy last month compared with 36 the previous January. Most sought Chapter 7 liquidation.
About a dozen businesses filed for Chapter 11 reorganization, which gives them time to restructure their operations and pay creditors over time. They include Northwest Foot & Ankle Associates in Edmonds and Bob's Cabinet Creations, a local cabinet maker, according to court records.
