RGJ reports a surge in bankruptcies. Nevada was up 44 percent from a year ago. I suspect that bankruptcies and foreclosures would follow similar paths.
Previous recessions also drove people to bankruptcy court, though those increases were more moderate. Bankruptcies went up 19 percent amid the economic contraction in 2001, and about 15 percent during the recession of the early 1980s, according to the Administrative Office of the U.S. Courts.
Bankruptcy is considered a lagging economic indicator, since it is generally a last resort. The filings compiled by the AP illustrate the places where the economic meltdown has hit hardest.
In March, bankruptcy filings jumped the highest across the West. In Arizona, filings rose 48 percent from a year ago. They were up 46 percent in Idaho, 45 percent in California and 44 percent in Nevada, though those were trumped by Delaware, home to many large corporations, which saw a 56 percent jump.
