The monthly filing statistics from the Minnesota bankruptcy court show a year over year increase. As of the end of October there was a 2.65 percent for the cases handled in Minneapolis. The increase for the entire state is 2.18 percent. St. Paul shows only a 1.62 percent increase, but Duluth has a 3.66 percent increase. This is the first increase for the state of Minnesota since 2010, when there was an increase of 7.15% for the state. The years 2011 through 2016 showed decreased numbers of filings. An exception to this six year decline was Fergus Falls and Duluth. Both of them had increased bankruptcy filings starting in 2016. Bankruptcy filings of all types in Minnesota totaled 8,148 at the end of October this year. The total a year ago at the end of October was 7,974.
I will admit that is not a very large increase, but I still believe this is news. It is news because each of the prior six years showed a decline in bankruptcy filings in excess of 10 percent per year for this state. After years of decline the number of people in Minnesota bankruptcies hit bottom and is now on the upswing. I am finding that phone calls and emails to my office are on the upswing too.
Many people who really need to file bankruptcy have been just too poor to do it until now. There’s a point where as the economy improves, bankruptcies will increase because of this pent up demand. I believe that’s what we are seeing. If you are feeling a need to call me, you are definitely not alone. There’s no reason to feel embarrassed about it.