BANKRUPTCY FILINGS in New Hampshire and nationally continue to decline, according to recent court statistics. Last year, New Hampshire's decreases in numbers of filings and the rate of filings per 1,000 of population showed the steepest drop in the country.

For the 2000 calendar year, the NH Bankruptcy Court is projecting 3,773 filings, a drop of more than 22 percent. Chapter 7 filings, which began skyrocketing in the mid-1990s despite the improving economy, also are projected to decline to 3,455.

US Bankruptcy Court Judge Mark W. Vaughn said the strong real estate market is playing a major role in slowing the number of filings in New Hampshire. "The improving real estate market has had an impact on bankruptcy filings. It gives some debtors a way out because they always have the opportunity to sell their house," he said.

Vaughn pointed out, however, that Chapter 13 bankruptcy, also known as personal reorganization plans, which are utilized by filers with a regular source of income, are holding steady. In 1999, there were 285 such filings in the Manchester bankruptcy court; this year, 300 filings are projected based on current trends.

Vaughn said the overall number of bankruptcy filings remains many times higher than when he joined the bench in 1987- in that year, there were a total of 608 filings.

In other news, Bankruptcy Court Clerk George Vannah said the court is seeking to become one of the first group bankruptcy courts to implement electronic filing. "If we are on the list, we would install the case management software by April, and, depending on how aggressive we are, we could be taking filings by July 1, 2001, or perhaps at the end of summer or early fall," said Vannah.

Several members of the clerk's staff have visited pilot sites and been impressed with the system. "It's a lot more user-friendly than some people might expect," said Vannah. "The attorneys who really will benefit from this will be the sole practitioners who don't have the wherewithal to send messengers to Manchester for each filing."

The court is also reactivating a local rules committee to gather input on necessary changes in general, and specifically to consider local rules for electronic filing, Vannah said.

Also on the technology front, Vaughn said the NH court has not been asked to approve the disposal of assets through online sales. "The reports from other states are that they've gotten a good return on doing that. We're not against it, it just hasn't come up yet."

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