As of January 31, 2025, specific data on bankruptcy filings in California, particularly in the Walnut Creek area, is not yet available. However, recent reports indicate a nationwide increase in bankruptcy filings. According to data from BankruptcyWatch, Chapter 7 filings have risen by approximately 9.08% year-over-year, with 5,576 cases in early 2025 compared to 5,112 during the same period in 2024.
This upward trend suggests that bankruptcy filings may also be increasing in California, including areas near Walnut Creek. For the most current and detailed information on bankruptcy filings in your area, you can consult the U.S. Bankruptcy Court for the Northern District of California, which serves Contra Costa County. The Oakland division office, located at 1300 Clay Street, Room 300, Oakland, California 94612, handles filings for residents in this region.
The last bankruptcy boom was during the years of 2008-2010 when the real estate and financial crisis set in. Bankruptcies decreased year over year from 2011 - 2023, one of the longest periods without a long recession. The brief Covid recession quickly turned around with all of the Covid government relief packages. In addition interest rates were at historic lows, consumer spending was up , the stock market was at all time highs, and unemployment was low. Adding to the situation, post-covid saw a lot of collection activity stayed. Eviction actions were delayed.
In 2024 the situation changed as the Covid relief ended and many small businesses felt the effects. The economy on one level looks good but on another level the economy is not looking good - small restaurants and small construction related businesses have all felt the slowdown. This year consumers are spending less with tariff uncertainties and the potential impacts of Trump's Big Beautiful Bill. Add to that record credit card debt and layoffs - all of that adds up to increased bankruptcy filings.
Call David A. Arietta, Esq. if you have any questions about bankruptcy and what the trends are looking like. He can be reached at (925) 472-8000.