Normally being number one in something is a good thing, but not today. Two separate reports illustrate the overall effect of the recession on Nevada.
The Administrative Office of the U.S. Courts reported the bankruptcies rose almost 35 percent as of September 30, compared to last year. This puts the number of bankruptcies nationwide at 1.4 million filings. They also reported that Nevada had the highest bankruptcy rate in the country.
Nevada’s bankruptcy rate is about 10.5 cases per 1,000 people, a 64 percent increase compared to last year. This brings the total number of bankruptcies in Nevada to over 27,500 cases. There are no signs of things getting any better soon as the unemployment numbers also came in reporting a rate of 13 percent for Nevada. Much of this is due to the decreased number of tourists which Las Vegas, Nevada’s biggest city, relies on so heavily.
Of the 27,500 bankruptcy cases in Nevada, nearly 97 percent were personal filings and just over 3 percent were business filings. Of the personal filings, 72 percent were Chapter 7 liquidation cases.
However, there is somewhat of a silver lining to this harrowing news. TransUnion.com reported that the percent of people who are 90 days or more delinquent on their credit cards are down in the third quarter at 1.98 percent which is down from 2.44 percent and 2.19 percent in the first and second quarters.
Nevadans are spending less, about $200 compared to the second quarter, and banks are limiting lending. TransUnion.com projects that the delinquency rate will drop in Nevada to just over 1 percent in the fourth quarter even with the holidays.


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