The Bankruptcy Crisis in Chicago
By Steven R . Fox and J . Scott Bovitz
Steven R . Fox The Fox Law Corporation Encino , California
J . Scott Bovitz Bovitz & Spitzer Los Angeles , California
... Chapter 8 ...
[ Footnote : Mr . Bovitz acknowledges that Mr . Fox wrote the bulk of this article and Bovitz might just be looking for reflected glory in the joint byline . On the other hand , Mr . Fox acknowledges that Mr . Bovitz has a quirky sense of humor , is a master of meandering footnotes , and has “ improved ” this article with his editorial blue pencil . For the younger reader , who may never have seen a pencil , go to “ How A Pencil is Made ,” http :// www . generalpencil . com / how-apencil-is-made . html .]
The 1950s
This was a real crisis -- the kind that only bankruptcy professionals could love .
For 15 years , bankruptcy filings had increased . In a single day , 83 bankruptcy petitions were filed in
Chicago . Was this 2008 ? Nope . 1957 !
[ Footnote : For the facts cited in this article , your authors are relying upon semi-legible photocopies of newspaper articles from the 1950s . The vague chain of custody is mysterious to Mr . Bovitz . However , Mr . Fox swears that these newspaper clippings were given to him by a Chicago bankruptcy professional in the early 2000s . In short , we can ’ t really vouch for the truth of the matters discussed below . However , that doesn ’ t seem to matter much in federal court . See , Federal Rule of Evidence 902 (“ The following items of evidence are self-authenticating ; they require no extrinsic evidence of authenticity in order to be admitted : ... ( 6 ) Newspapers and Periodicals . Printed material purporting to be a newspaper or periodical .”). Also , our regular readers know that the rules of evidence are a bit more relaxed in the Chapter 8 column .]
In 1933 , during the worst of the Great Depression , debtors filed 3,955 bankruptcy petitions in the Chicago district court .
[ Footnote : Chicago Daily News , October 12 , 1957 , Bankrupt : in 10 Easy Payments ( hereinafter , “ Bankrupt in 10 ”).]
Elmore Whitehurst was acting director of the Administrative Office of the United States Courts . For the fiscal year ending June 30 , 1957 , Mr . Whitehurst estimated that bankrupts would file 72,000 bankruptcy petitions in the United States . In the same two-year period , the Northern District of Illinois would see a 42.3 % increase in filings .
[ Footnote : Chicago Sun-Times , May 8 , 1957 , page 26 . In the Bankruptcy Act of 1898 , judges were “ referees ” and petitioners were “ bankrupts .” According to
28 CONSUMER BANKRUPTCY JOURNAL Summer 2017 National Association of Consumer Bankruptcy Attorneys