
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, October 25, 1994                   TAG: 9412220049
SECTION: BUSINESS                    PAGE: C8   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

BANKRUPTCY FILINGS SLOW SOMEWHAT IN 3RD QUARTER

The rate of bankruptcy filings slowed in the July-through-September quarter, but 1994 still is on track to be the third-busiest year on record for the Western Virginia court.

A new statistical report by the United States Bankruptcy Court for Western Virginia in Roanoke shows the load of new cases filed in the third quarter decreased in two of the court's three divisions compared with a year earlier.

The load of new cases decreased about 1 percent in the Roanoke division, according to John W.L. Craig II, clerk of the court. In Lynchburg, new cases decreased by about 2 percent; but at Harrisonburg, the load increased by 4 percent.

But it appears the small decreases were a blip on the screen. Craig said the number of new filings in Roanoke and Lynchburg has turned back up in October, the start of the fourth quarter.

Despite its third-quarter increase, Craig said, Harrisonburg was down for the first two quarters and still is seeing a decrease for the year as a whole.

If trends hold through December, Craig said, the Western Virginia court will experience a 2 percent increase in filings over 1993. If so, he said, this year will be the third largest for bankruptcy filings ever, ranking just behind 1991 and 1992.

Craig said Chapter 13, or wage earner's plan, filings continued to rise, compared with the number of Chapter 7 filings for liquidation. Under wage earner's plans, individuals pay off portions of debt over a period of time and under court supervision.

Such petitions, which have accounted for about 12 percent of the district court's filings, now account for 15.5 percent of the cases overall, Craig said. That trend is steady throughout the district, Craig said, and the court does what it can to facilitate filing and handling of wage earner's cases.

The percentage of Chapter 11 filings by businesses seeking protection from creditors during financial reorganization has remained steady over many years. Most reorganization petitions come in the court's Roanoke division because, Craig said, of the large number of small coal companies in that court's jurisdiction.

Craig said he expects a "gradual upkick" in the number of bankruptcy filings in coming months, leading to the usual sharp upturn in late February and March.

"Christmas bills will do that," Craig said.

by CNB