Bankruptcy business up sharply

Not just bankruptcy attorneys were busy as the Oct.

17 deadline neared for sweeping changes in the U.S bankruptcy law.

We The People, franchised operations that allow consumers to handle legal paperwork themselves, also saw a sharp spike.

In Carson City, for instance, 30 customers flocked to the We The People store in a single day earlier this month to get the paperwork they needed for bankruptcy filings.

That compares with an average of one or two bankruptcy customers a day in earlier months, said Sue Sidwell,who owns the store with her husband, Randy.

The upsurge came steadily through the month, she said, as consumers decided they wanted to beat the new law and its stricter requirements.

Filings in U.S Bankruptcy Court in Reno during September totaled 634 compared with 302 in the same month a year ago, and clerks were steeling themselves for a wave of filings last week.

While some bankruptcy attorneys will be leaving the practice as the result of provisions in the new law that hold them personally responsible for what their clients tell the bankruptcy court,We the People is classified as a debt relief agency under the new law.

That means, Sidwell said, that the company expects to continue handling a steady flow of bankruptcy customers along with customers seeking other legal forms to file themselves.

The storefront operations don't provide legal advice, although a centralized staff of paralegals at a Utah location helps We The People customers complete their documents.

The company's franchise in Reno is owned by Dennis and Karleen Cowan.