Bankruptcy filings in each of Oklahoma’s three federal bankruptcy districts continued their upward climb in 2009.
Oklahoma bankruptcy filings set all-time highs in 2005 as thousands upon thousands of Oklahomans raced to file bankruptcy before new bankruptcy laws took effect in October 2005 setting tighter income limits and new standards for measuring a debtor’s ability to repay creditors.
In 2006, after the new bankruptcy laws went into effect, bankruptcy filings dropped precipitously, mainly because many of the people who would have filed bankruptcy in 2006 had already filed in 2005 in an effort to beat the new laws known as the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA).
According to Michael Williams, bankruptcy court clerk for the Northern District of Oklahoma in Tulsa, “At the time, people thought they needed to file because they’d never be able to file for bankruptcy again.”
“Filings have risen, and we expected it,” said Michael Williams, bankruptcy clerk for the Northern District Court. “We expected it, not because of the economy, but because the filings went so low after the new rules went into effect.
“We expect it to grow back to the level where it was before the new rules were passed. It will probably be at least another 30 percent next year.”
Source: Tulsa World
