Due to increase in foreclosure and unemployment many residents are facing severe problems. Many bankruptcy filings are reported in Sacramento and Central Valley which has lead to an increase in foreclosure and unemployment. According to a report more than 31,000 personal and business bankruptcy petitions were filed in the Eastern District of U.S. Bankruptcy Court in 2008, an increase of 79% over 2007's filings. In other areas like Sacramento filings were up 71%; in modesto, 88 percent; Fresno's federal courthouse, up 96 percent. Richard, clerk of U.S. Bankruptcy Court for Eastern District of California has said, "We have never experienced increases with the number of percent we're seeing". Due to bankruptcy there is an increase in unemployment which has lead to loss of health insurance.

Labels: Increase in Bankruptcy filings in 2008