I thought it might be of interest to readers to take a look at relevant bankruptcy news in Connecticut for the past week or so.
Connecticut saw 8,618 bankruptcies last year–90% of which were Chapter 7 bankruptcy filings. That’s the highest number of bankruptcies in Connecticut other than 2005 when the new bankruptcy law was passed and there was a rush to file before it went into effect. Despite the high numbers, however, 4th quarter trends apparently indicate that the number of bankruptcy filings in Connecticut slowed town a bit, perhaps a promising sign of a return to economic growth in the near future.
2. Foreclosures Slow in New London County (theDay.com)
“The county recorded 1,326 foreclosure filings last year, compared with 1,511 the year before, according to numbers released Thursday by California-based RealtyTrac.” That’s 1 foreclosure for every 88 housing units, a better rate than Connecticut as a whole.
3. Bernie’s Bankruptcy Shocks Customers (MyRecordJournal.com)
In a surprise to its customers, electronics and appliances retailer Bernie’s filed for Chapter 11 and closed all 15 of its stores. Store locations included the Queen Street retail center, as well as locations on Universal Drive in North Haven and Lakewood Road in Waterbury. Bernie’s also had stores in Rhode Island and Massachusetts. The chain dates back to 1947 in Hartford when Bernie Rosenberg began selling TVs out of a gas station.
4. Connecticut is losing residents (MyRecordJournal.com)
A study by Atlas Van Lines indicates that Connecticut currently has the highest move-out-of-state rate. In the bigger picture, many residents are leaving Connecticut and the Rust Belt States and heading southwest. Interestingly, the distressed real estate markets in Nevada and Texas are attractive to snow-birds from Connecticut and elsewhere.
5. Stamford accountant admits role in mortgage fraud (StamfordAdvocate.com)
Stamford accountant Jose I. Flores waived his right to indictment and admitted to participating in a mortgage fraud scheme in which he conspired with others to defraud mortgage lenders by providing fraudulent “accountant letters” as proof of income for people buying homes. In the scam, Flores and others would provide letters that falsely indicated how long mortgage applicants had been self-employed or working as landscapers and cleaners.
If you’re thinking about bankruptcy in Connecticut, please contact me for a free initial consultation to get answers to all of your Connecticut bankruptcy questions.
Contact Attorney Melchionne
Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710