San Diego bankruptcy attorneys might just have to stay put a while longer. Although recently released data shows most San Diego area home prices on the rise from last year, the backlog in San Diego foreclosures might still leave lingering effects on San Diego's economy and might even increase Chapter 13 bankruptcy filings.

The highest price-per-square foot increase on sold homes in the San Diego area was in Point Loma, where price-per-square foot increased 45 percent. Of course, only three houses were sold in Point Loma in 2009 and eleven houses in 2008. LaJolla saw a huge drop in price-per-square-foot with a price decrease of 24 percent from 2008.

The data fails to provide San Diego bankruptcy attorneys with any real indicator of bankruptcy trends in the year to come. Although the first-time homebuyer's credit has been extended, there still remains a foreclosure backlog for San Diego area homes. And with foreclosures looming on the background, bankruptcy can't be too far behind.

San Diego bankruptcy attorneys have seen many homeowners driven to the bankruptcy courts due to the inability to maintain their house payments. Indeed, with declining home values, as we see in LaJolla, it remains difficult for homeowners to pull from their home equity in order to provide themselves with the much needed financial cushion. Without this cushion, many find themselves in the offices of San Diego bankruptcy attorneys, seeking relief from their increasing debt.

The true indicators of bankruptcy in San Diego may only become apparent as the year continues and as the backlog of foreclosures slowly wears off. Until then, San Diego needs to continue business as usual, even if that means declaring bankruptcy.

Related Resources

  • San Diego McMansions Facing More Foreclosures (Bankruptcy Legal Blog)
  • Home Foreclosure (Bankruptcy Legal Group)