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January 19, 2006 Bankruptcy Cases Continue to Increase in North Dakota In 2005, 2,455 bankruptcy cases were filed in North Dakota, an increase of 426 cases since 2000. This month’s “Economic Briefs,” 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. Nearly all states (45 of 50) reported increases in the number of bankruptcy cases filed between 2000 and 2005. Five states (Rhode Island, Delaware, Hawaii, Maryland and California) had a decrease in the number of cases. Overall, bankruptcy cases filed in the U.S. climbed an average of 5.2 percent per year between 2000 and 2005. The number of bankruptcy cases in North Dakota is double compared with 10 years ago and more than three times higher than 20 years ago. “What is particularly alarming about this trend is that North Dakota’s population actually declined during this period, meaning that bankruptcy cases per capita have increased sharply,” says Richard Rathge, State Data Center director. In 1981, 600 bankruptcy cases were filed in North Dakota. The number of filings rose dramatically during the latter half of the 1990s, reaching a peak in 1999 at 2,200. The number of bankruptcy cases then modestly declined, but then increased again. North Dakota’s trend in bankruptcy filings has followed the national pattern of change closely. The impact of the stricter bankruptcy guidelines implemented in October 2005 and the rush to file before they went into effect may be reflected in the 2005 statistics. An important factor in bankruptcy cases is debt. According to data from the Survey of Consumer Finance, three out of four families have some form of debt. In 2003, mortgage debt throughout the nation totaled $9.5 trillion, up 37.7 percent from 2000. While credit card debt only represents 3.4 percent of all debt nationwide, the median balance for card-holding families was $1,800 in 2001. Also, one in four families with credit cards hardly ever pay off the balance. ### Source: Richard
Rathge, (701) 231-8621, richard.rathge@ndsu.edu
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