Bankruptcy filings in Utah soared 47 percent last year -- a sign that the state's consumers were feeling the impact of the nationwide recession well before it was officially declared in late 2008.

David Sime, clerk of the U.S. Bankruptcy Court for Utah, reported Wednesday there were 9,256 bankruptcy petitions filed with the court last year, a big increase over the 6,284 petitions filed in 2007.

"We saw a pretty steady increase all year, although there were a couple of months where filings really went up," Sime said, pointing to a 72 percent increase in October and a 64 percent jump in December.

Nationwide, consumer bankruptcy filings increased nearly 33 percent in 2008, according to the American Bankruptcy Institute, a Virginia-based organization that researches and provides education materials on issues surrounding insolvencies.

"Consumers are under great financial stress, with no immediate end in sight," said Sam Gerdano, executive director of the institute. "We expect the upward spike in personal bankruptcies to continue in 2009."

Almost 1.1 million Americans filed for bankruptcy in 2008 as the first recession in seven years forced more companies and individuals to seek protection from creditors.

"It's no surprise that bankruptcy rates are well up, given that economic conditions, both at the corporate and household level, deteriorated significantly last year," said Robert Dye, a senior economist with PNC Financial Services Group in Pittsburgh.

Although Utah's 47 percent increase in 2008 may seem severe, Sime noted bankruptcies in the state still are less than half the number filed in 2005, the year Congress passed bankruptcy-reform legislation that resulted in a sharp decline in nationwide filings the following year.

The biggest increases state-by-state occurred in California, where filings rose 85 percent last year, and Arizona, where total filings were up 81 percent over 2007 levels. Those two states are among those with the highest foreclosure rates.

Along with excess consumer debt that arises from too much spending, and growing pressure on family budgets resulting from the nation's deepening recession, there also are a host of other reasons consumers run into financial problems.

They include the loss of a job, a divorce or unexpected bills from a medical emergency, said Todd Christensen, director of education at Debt Reduction Services Inc., a Boise company approved by the bankruptcy court to offer financial counseling online to Utahns facing bankruptcy.

"Lately, we've also found ourselves providing counseling to a growing number of people who worked in the construction industry, or who were involved in the real estate industry, either as agents, brokers or investors," Christensen said.

On a more positive note, the number of Utahns seeking financial advice prior to getting into trouble appears to be increasing.

"We're seeing more people come in just to help them through these tough times," said Ann House, a financial education specialist with the Utah State University Extension. "And that is amazing to me, because usually people don't seek help until they're in trouble."

Unfortunately, there is no shortage of folks in the latter category, said House, whose agency offers financial education seminars statewide. "It is what you'd expect. There are those who went out and bought homes they couldn't afford, expecting a pay increase, but instead not only didn't get a raise but lost their job, as well."

Data from the U.S. Bankruptcy Court for Utah indicates that 58 percent of those who filed for bankruptcy, or 5,413 Utahns, sought a Chapter 7 that involves a petitioner's property being liquidated and the proceeds distributed to those who are owed money.

Another 41 percent of Utahns who sought protection filed for relief under Chapter 13, which allows debtors to formulate a plan to repay all or at least part of what they owe over a period of time, typically three to five years.

steve@sltrib.com

Bloomberg News contributed to this story