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First quarter bankruptcy filings decline locally and nationally

Posted: April 08, 2011

Buffalo, NY -- Statistics reported by the United States Court Western District of New York (which includes the 17 counties surrounding Buffalo and Rochester) indicate declines in local consumer bankruptcy filings during the first quarter of 2011. The Western District saw a decline of 14.1 percent for the period January 1, 2011 to March 31, 2011, compared to the same quarter in 2010. During the same period the greater Buffalo region saw a decrease of 15.9 percent and greater Rochester had a decrease of 10.8 percent. Nationwide, filings fell 6 percent, according to the American Bankruptcy Institute (ABI).

“The declines in filings both locally and nationwide reflect the fact the economy is stabilizing and consumers are reducing their debt levels and saving more,” said Jeffrey Freedman, senior partner, Jeffrey Freedman Attorneys at Law.

Filings for the month of March 2011 compared to March 2010 also showed declines. The Western District decreased 18.8 percent in March, Buffalo was down 22.5 percent, and Rochester down 12 percent. Nationally, there was a 3 percent decline during March 2011 compared to March 2010.

Western New York’s bankruptcy filings show sharper declines than the rest of the country because the economy here is showing improvement in other sectors, according to Gary Keith, an economist with the Commercial Planning and Analysis Department of M&T Bank. In the greater Buffalo area employment went up 1.5 percent in 2010, with an increase of 2.7 percent in professional and business services jobs; and housing values increased 1 percent last year. In Rochester employment increased 1.5 percent and house values were up .6 percent.

“Although these gains are small, they show we have more households gaining affluence than losing,” Freedman said. “It’s a good sign for our area economy, which has been flat for many years.”

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