As bankruptcy filings become more common in Utah, there is a need for law firms to hire more attorneys to be able to protect consumers and businesses with their legal problems.
The Salt Lake City-based law firm Pearson, Butler, Carson & Cook has done just this to combat the 2% increase in state bankruptcy petitions filed in 2011 compared to 2010. There are also several more petitions being filed onby Utah bankruptcy attorney firms through the first quarter of 2012 than the prior year.
In 2011, the U.S. Bankruptcy Court District of Utah had 18,414 bankruptcy petitions filed, while 2010 had 17,968 debtors within the state file bankruptcy petitions. Similarly, Utah Chapter 11 business bankruptcy attorneys filings were also drastically higher in 2011 with 90 petitions filed compared to only 22 in 2006.
“I know there is talk about the economy improving, but I am not seeing any sign that things are improving,” said Len Carson, a bankruptcy attorney at Pearson, Butler, Carson & Cook. “What I am seeing are individuals and families who file Chapter 13 bankruptcy petitions in the hopes that they can repay their missed mortgage over a five year period. Others are using Chapter 7 as a way to liquidate their debt because they are fed up with the stress.”
Homeowners threatened with foreclosure and individuals and families stressed with creditor harassment continue to consider Chapter 7 and Chapter 13 as options, the firm said. Similarly, business owners frustrated with tighter business operating margins look to Chapter 11 business bankruptcy as a way to force commercial lenders to offer more favorable terms to keep their businesses open.
Lawyers at Pearson, Butler, Carson & Cook are not too optimistic for a quick turnaround as more petitions are currently being filed through the first quarter of 2012 than last year and the state unemployment rate (5.7%) continues to be high.
“I see 2012 being higher than last year,” Carson added. “Until homeowners get some additional assistance from lenders through modifications or other mortgage relief, Chapter 13 petitions will continue to be filed.”
