2009 Colorado bankruptcy filings soar | VailDaily.com

2009 Colorado bankruptcy filings soar

Aldo Svaldi
The Denver Post

Heavy mortgage debts and a tough economy pushed Colorado bankruptcy filings up 38 percent in the first half of the year.

The U.S. Bankruptcy Court for Colorado recorded 13,041 new filings in the first half of the year, compared with 9,470 in the same period of 2008.

“I’ve been doing this long enough to see four recessions, and this is the worst I’ve seen in the last 24 years,” said Stephen Berken, a Denver bankruptcy lawyer.

Berken, who filed four cases Wed nesday, said unmanageable mortgage debts are behind more filings. Historically, high medical bills, divorce and job losses trigger filings.

People with businesses in real estate, construction and mortgages are showing up in increasing numbers, said John Turner, a Colorado Springs lawyer.

“A lot of people were speculators who tried to invest in real estate,” he said. “They are a big source of clients.”

For more of this Denver Post story: http://www.denverpost.com/ci_12847289

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