Bankruptcy up in Wyoming
Laramie, WY – The head of the Wyoming Banker's Association says more Wyomingites are filing for bankruptcy... because of lost jobs, lost income, and lost value on their homes. Bankruptcy filings in Wyoming increased 61 percent between fiscal year 2008 and fiscal year 2009. Dave Johnson from the Banker's Association says he's hearing from bankers around the state that in particular the increase is due to people losing their jobs. "Lost jobs, lost income from no overtime, and lost secondary incomes from second and third jobs."
Johnson says another factor is that some mortgage brokers were successful at getting Wyoming people to take out sub-prime mortgages. Now real estate values are going down. Johnson says that means some people's home values are now below their mortgage values, which leads them to file for bankruptcy. There were over 12-hundred bankruptcy filings in Wyoming during the fiscal year that ended in September. During the previous fiscal year there were about 770 filings.