Bankruptcy filings in Eastern Washington and North Idaho are rising again following historic drops in 2006.


Filings in the Northern Division of the U.S. Courts, District of Idaho nearly doubled to 414 cases last year, up from 219 cases the prior year. The Northern Division handles cases from Kootenai, Benewah, Bonner, Boundary, and Shoshone counties.


In 2006, filings in the division had dropped 87 percent, down from more than 1,600 cases, following enactment of the Bankruptcy Abuse Prevention & Consumer Protection Act, which took effect Oct. 17, 2005. The new law added requirements that debtors had to meet before theyre eligible for protection from creditors.


Filings in the Eastern Washington District of U.S. Bankruptcy Court are on the rise as well, increasing 22 percent to 4,270 cases in 2007. The caseload in that district had dropped to 3,350 in 2006 from 11,506 in 2005, following passage of the federal reforms.


Cameron Burke, a clerk for the Idaho district, says economists and bankruptcy experts expected the number of bankruptcy filings statewide to rebound to historic levels much more quickly than they have.


The number of filings in Idaho has risen about 42 percent over the last 12 months. Filings had dropped 77 percent to 2,743 cases in 2006, from 11,808 cases in 2005. Burke says he anticipates the number of filings will continue to rise over the next two years.


Robert D. Miller, an assistant U.S. trustee here for the U.S. Department of Justice, says perspective is needed in comparing the numbers of filings between 2006 and 2007, because for the last two months of 2005 and the first two months of 2006 virtually no one filed bankruptcy, following the bankruptcy reforms, skewing the numbers for those years.


The U.S. Trustee Program enforces bankruptcy laws and provides oversight of private bankruptcy trustees.


Trends still are emerging following the changes instituted in 2005, Miller says. Nationally, Chapter 7 liquidation filings have dropped further and stayed at a lower level longer than Chapter 13 wage-earner filings since 2005, he says. Spokane has followed that trend, though not as sharply, he says.


Kevin ORourke, a bankruptcy attorney with Southwell & ORourke PS, of Spokane, says his office has seen an increase in filings over the past year, which he attributes to a downturn in the economy and the real estate market, and to people learning that they still can file for bankruptcy despite the amendments to the law.


ORourke says he expects the number of filings to go up next year as well, as the number of home foreclosures continues to increase, and people become more aware of the details of the federal act.


Contact Jeanne Gustafson at (509) 344-1264 or via e-mail at jeanneg@spokanejournal.com.