Bankruptcy filings in state surge 52% in first half from year ago

More than 15,000 people filed for bankruptcy protection in Washington state in the first six months of this year, a 52 percent increase over last year.

That growth rate, if it holds through the year, would be the sharpest annual increase in bankruptcy filings Washington has seen in at least three decades. In both 1986 and 1996, the state saw filings soar over 35 percent, the biggest spike on record, according to figures from the American Bankruptcy Institute. In 2008, there were 21,835 bankruptcies in Washington state, according to the institute.

The surge in this year's bankruptcies are related to the housing bust, experts say, and homeowners being unable to sell or refinance to get out from under mortgages heavily marketed during the past housing boom.

Among the states, Washington ranked 24th in June in per capita bankruptcy filings and ninth in the annual increase in per capita filings, according to AACER, a bankruptcy data and management firm.

Last month Snohomish County saw 309 new bankruptcies, an 84 percent increase over a year ago, the biggest among large counties in Washington. There were 601 filings in King County, up nearly 70 percent, and 346 in Pierce County, up about 32 percent.

Business bankruptcies, although a fraction of total filings, also contribute to families seeking relief from creditors in bankruptcy court. Eighty-seven businesses in Western Washington filed for bankruptcy in June, more than doubling from 40 the previous year.

Sanjay Bhatt: 206-464-3103 or sbhatt@seattletimes.com