According to the U.S. Bankruptcy Court for the District of Colorado there were 13,041 new cases filed during the first half of 2009. During the same period of time last year there were only 9,470 bankruptcy cases.

A Denver Post article published on July 16th stated that “heavy mortgage debts and a tough economy” forced the number of personal bankruptcy cases filed in Colorado up thirty-eight percent in the first half of this year. This is slightly higher than the thirty-six-point-five percent increase in those who filed nationally during the first half of 2009. The American Bankruptcy Institute claims that the overall number of national cases by the end of 2009 could reach one point four million.

Apparently, many of the bankruptcy cases originated with speculators who tried to invest in real estate.

Small businesses, especially retailers, are hurting as consumers conserve on spending. Business failures, such as Monument-based Poelstra Family Enterprises, owner of the Taste of Life Natural Market & Prepared Meals who recently filed Chapter 11, are compounding the problem.

Bankruptcy filings in Colorado are on track to match levels reached in 2003, toward the end of the last economic downturn. Brad Bolton, clerk for the bankruptcy court in Denver, believes that at that time, it was easier for people to rely on their home equity and credit cards to stay afloat. “A lot of people are overextended and unemployed. It is not as easy to live off consumer credit like it was four or five years ago,” he stated.

With this national and state trend projected to continue throughout this year, it is important to consider bankruptcy as a viable option before it is too late. If you live in the Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden, Colorado area, and want to investigate the possibility of filing for bankruptcy contact me at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.