BK

[StL_Dan]

Missouri's filing rate is highest in the nation, four times that of South Carolina. Find out which states round out the Top 10, and see where Chapter 7 filings are least likely to occur.

By Liz Pulliam Weston

Missouri's reputation for skepticism is well-known, but the "Show Me State" may have to change its license plate slogan to the "Bankruptcy State" if current trends continue.

People who live in Missouri filed for Chapter 7 bankruptcy in 2002 at a per-capita rate more than four times that of South Carolina, which had the lowest filing rate.

Regionally, the Top 10 list of states with the highest rate of bankruptcies was dominated by states in the Midwest and West, while the states with the lowest rates were mostly in the Northeast and Deep South.

Highest and lowest bankruptcy rates, 2002
Rank State Rate Rank State Rate
50 Missouri 699 1 South Carolina 164
49 Indiana 691 2 Texas 188
48 Nevada 665 3 Alaska 194
47 Utah 616 4 North Carolina 205
46 Oklahoma 608 5 Massachusetts 225
45 Oregon 578 6 Delaware 242
44 Idaho 558 7 Vermont 249
43 Kentucky 544 8 New Hampshire 271
42 Ohio 538 9 Connecticut 280
41 West Virginia 531 10 New York 289

*Number of filings per 100,000 population. U.S. average is 381.
Source: American Bankruptcy Institute, U.S. Census
Bankruptcy experts have some theories about why some states outstrip others in consumer insolvencies, said American Bankruptcy Institute chief Samuel J. Gerdano, but nobody really knows for sure.

“No one’s done an empirical study” that could explain the wide variations, Gerdano said.

Missouri bankruptcy trustee Gary D. Barnes believes his state has been especially hard hit by the economic downturn. The Kansas City bankruptcy attorney said several large corporate insolvencies have led to widespread layoffs and a ripple effect of failures among small businesses.

But Missouri’s unemployment rate last year was below that of several states that landed on the lowest-filing list, including Alaska, Texas and North and South Carolina.
South Carolina experts were similarly baffled by their standing in the national rankings.

“Some people would say it’s a strong work ethic and a desire to pay people back,” said Joseph F. Buzhardt III, Assistant U.S. Trustee for the Department of Justice region that includes South Carolina. “I don’t really know.”

Some other possible theories:

Lack of health insurance
Bankruptcy experts believe medical bills contribute to about one in five bankruptcies, and the states with the highest filing rates do tend to have larger-than-average populations of uninsured. For example, 22.4% of Nevada’s population, 19.8% of Oklahomans and 17.3% of Oregonians lacked health insurance last year, according to surveys by the Centers for Disease Control and Prevention, compared with 14.1% nationally. But Missouri, Indiana and Utah have uninsured populations in line with the national average, while Texas -- one of the lowest filing states -- has an uninsured population of 27.8% of its citizens. Alaska and North and South Carolina also exceed the national average.

Lack of income
The lowest-filing list includes several states with above-average income, including Alaska (No. 1 in the country, with a median income last year of $57,363) and Connecticut (No. 3 at $53,347). The state with the nation’s lowest median income, West Virginia ($29,673), is on the high-filing list. But so is Utah, ranked No. 12 in income ($47,342).

Gambling
Gaming opponents fret that casinos lead to more bankruptcies, although that phenomenon is hard to track, ABI’s Gerdano said. Gambling debts are rarely listed separately on bankruptcy filings, since many people use credit cards to fuel their addiction. While both Nevada and Missouri have lots of casinos, Utah isn’t exactly known for its wild-and-crazy gaming culture.

Consumer protections
Southern states tend to give creditors more leeway to go after consumers who owe them money, Gerdano said, and a bankruptcy filing is often seen as the only way to get relief. “It’s a way to get (creditors) off their backs,” Gerdano said.

Then why are South and North Carolina on the low-filing list? Perhaps because, like Texas, these states severely restrict one of a creditor’s most effective tools -- wage garnishment. Texas bans wage attachments except for child support, and the Carolinas have similarly strict laws.

In addition, Texas has some of the most liberal creditor exemptions in the country -- which means that creditors can’t take most people’s stuff. Texas doesn’t allow creditors to go after residents’ homes, regardless of value, as long as the property is less than 10 acres in a town or city or 200 acres in the country. One car per family member is also sacrosanct, as is personal property of up to $60,000.

Compare that to Missouri’s laws: The real estate exemption is limited to $8,000, with another $1,000 to cover all household goods.

“If they don’t have the thought that their house or their furniture or their car is going to be taken away,” said attorney Robert B. Wilson, chair of the Texas state bar’s bankruptcy law section, “they’re a lot less likely to file.”

[QueSi2Opie]

Gambling
Gaming opponents fret that casinos lead to more bankruptcies, although that phenomenon is hard to track, ABI’s Gerdano said. Gambling debts are rarely listed separately on bankruptcy filings, since many people use credit cards to fuel their addiction. While both Nevada and Missouri have lots of casinos, Utah isn’t exactly known for its wild-and-crazy gaming culture.

Of course you'd highlight that, it's the Christian way. Although my Catholic friends would argue differently. The Admiral Casino itself went bankrupt in St. Louis, so that would be the only way I'd include casinos.

What are bankrupty filings in New Jersey (Atlantic City), Colorado (Cripple Creek, Black Hawk, Central City), Mississippi (Tunica, Biloxi, and Gulfport) and Louisiana (Lake Charles, Baton Rouge, and New Orleans)?

I jus' don't see how these idiots lose money in Missouri with the stupid $500 loss limit. Missouri is the only state with casinos that has one in place.

Thirty-seven states currently have casinos. I know Minnesota has about 18 casinos and the gambling age is 18 instead of 21. Three of the casinos are within a 20 to 30-minute drive from Minneapolis-St.Paul.

[StL_Dan]

Gambling
Gaming opponents fret that casinos lead to more bankruptcies, although that phenomenon is hard to track, ABI’s Gerdano said. Gambling debts are rarely listed separately on bankruptcy filings, since many people use credit cards to fuel their addiction. While both Nevada and Missouri have lots of casinos, Utah isn’t exactly known for its wild-and-crazy gaming culture.

Of course you'd highlight that, it's the Christian way. Although my Catholic friends would argue differently. The Admiral Casino itself went bankrupt in St. Louis, so that would be the only way I'd include casinos.

What are bankrupty filings in New Jersey (Atlantic City), Colorado (Cripple Creek, Black Hawk, Central City), Mississippi (Tunica, Biloxi, and Gulfport) and Louisiana (Lake Charles, Baton Rouge, and New Orleans)?

I jus' don't see how these idiots lose money in Missouri with the stupid $500 loss limit. Missouri is the only state with casinos that has one in place.

Thirty-seven states currently have casinos. I know Minnesota has about 18 casinos and the gambling age is 18 instead of 21. Three of the casinos are within a 20 to 30-minute drive from Minneapolis-St.Paul.

I just thought it was an interesting statement.....one that I'd never seen previously published. I wouldn't know if it's true or not....so I posted it to see what others thought. Notta big deal.

[QueSi2Opie]

I just thought it was an interesting statement.....one that I'd never seen previously published. I wouldn't know if it's true or not....so I posted it to see what others thought. Notta big deal.

I jus' get defensive when I think peeps are attackin' the casinos. It's a form of entertainment I enjoy, and if morons throw all their money away at them, that's their own fault!

We might as well get rid of the bars because they cause alchoholism and drunk driving.

If we're goin' to have a $500 loss limit at casinos, let's have a 2 drink limit at the pub.

Seriously, people always pick on the damn casinos. They are a form of entertainment for people willin' to gamble. In return, the casinos give a large piece of the pie back to the state. What do the bars/clubs give back?

BTW, I'm goin' to get hammered tonite and we're gonna drive to the Outhouse in Lawrence

[StL_Dan]

BTW, I'm goin' to get hammered tonite and we're gonna drive to the Outhouse in Lawrence

Why not streak through the quad and meet at the gymnasium?