Lehmans Unsecured Creditors Would Not Have Received Greater Returns Under Orderly Resolution Authority According to Latest ABI Quick Poll
Contact: John Hartgen
703-894-5935
[email protected]
LEHMAN’S UNSECURED CREDITORS WOULD NOT HAVE RECEIVED GREATER RETURNS UNDER 'ORDERLY RESOLUTION AUTHORITY,” ACCORDING TO LATEST ABI QUICK POLL
July 1, 2011, Alexandria, Va.— Even if 'orderly
resolution authority' had been in place for the Lehman bankruptcy, the
case would not have produced a greater return to unsecured creditors,
according to a majority (51 percent) of respondents to ABI’s
latest Quick Poll. Twenty-eight percent “strongly disagreed”
and 23 percent “disagreed somewhat” that the case would have
produced a greater return to unsecured creditors had “orderly
resolution authority” been in place for the Lehman bankruptcy.
On Sept. 15, 2008, Lehman Brothers filed the largest bankruptcy in U.S.
history with over $600 billion in listed assets. Lehman's filing
resulted from exposure to risky investments in housing-related assets
that cratered during the mortgage crisis. At the time of its filing,
investment banks such as Lehman were not subject to the same regulations
applied to depository institutions to restrict risk-taking activity. The
Dodd-Frank Act was signed into law in 2010 in response to the financial
crisis and to prevent failures of 'too big to fail' institutions.
Title II of the Dodd Frank Act set out the process of 'orderly
liquidation authority' that enables the government to liquidate covered
financial companies, including non-bank and insurance companies.
Thirty-three percent of respondents thought that unsecured creditors
would have received a greater return if “orderly resolution
authority” had been in place for the Lehman bankruptcy. Thirteen
percent did not know or had no opinion on the poll question.
ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and
the public are invited to respond to a question on a timely bankruptcy
or insolvency issue. Visit http://www.abiworld.net/quickpoll/
to access the results of previous ABI Quick Polls.
###
ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes over 13,000
attorneys, accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org. For
additional conference information, visit http://www.abiworld.org/conferences.html.
Dont Discriminate Against Debtors Seeking A Job According to Latest ABI Quick Poll
Contact: John Hartgen
703-894-5935
[email protected]
DON’T DISCRIMINATE AGAINST DEBTORS SEEKING A JOB, ACCORDING TO LATEST ABI QUICK POLL
July 15, 2011, Alexandria, Va.— A majority (66
percent) of respondents to ABI’s latest Quick Poll said the
Bankruptcy Code should be interpreted to prevent private employers from
discrimination in hiring based on an applicant’s prior bankruptcy.
Fifty percent “strongly agreed” and 16 percent
“somewhat agreed” that § 525(b) of the Code should be
read to prevent private employers from denying employment based on an
applicant’s bankruptcy.
Section 525(b) provides that “no private employer may terminate
the employment of, or discriminate with respect to employment against,
an individual who is or has been a debtor under this title, a debtor or
bankrupt under the Bankruptcy Act, or an individual associated with such
debtor or bankrupt, solely because such debtor or bankrupt.” A
recent Federal Court of Appeals decision highlights the distinction
between denying employment to an individual based on prior bankruptcy
filing and terminating the individual’s employment. The U.S. Court
of Appeals for the Eleventh Circuit held on May 17 that although
government employers may not deny employment to an individual who has
filed for bankruptcy protection, that prohibition does not apply to
private employers.
Thirty-two percent of respondents disagreed that § 525(b) of the
Bankruptcy Code should be interpreted by the courts to prevent private
employers from discrimination in hiring based on an applicant’s
bankruptcy. Two percent did not know or had no opinion on the issue.
ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and
the public are invited to respond to a question on a timely bankruptcy
or insolvency issue. Visit http://www.abiworld.net/quickpoll/
to access the results of previous ABI Quick Polls.
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes over 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
Consumer Bankruptcy Filings Down 8 Percent Through the First Half of 2011
Contact: John Hartgen
703-894-5935
[email protected]
CONSUMER BANKRUPTCY FILINGS DOWN 8 PERCENT THROUGH THE FIRST HALF OF 2011
July 5, 2011, Alexandria, Va. - U.S. consumer bankruptcy filings totaled 709,303 nationwide during the first six months of 2011 (Jan. 1-June 30), an 8 percent decrease from the 770,117 total consumer filings during the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The overall June consumer filing total of 119,768 represented a 5 percent decrease from the 126,270 filings recorded in June 2010.
'The drop in bankruptcies for the first half of the year shows the continued efforts of consumers to reduce their household debt, and the overall pull back in consumer credit,' said ABI Executive Director Samuel J. Gerdano.
The June 2011 filings did represent a 4 percent increase from the May 2011 consumer bankruptcy total of 114,803 filings. The percentage of chapter 13 filings for June was 28 percent, a one percent increase from May.
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor’s available non-exempt property. Unsecured debts not reaffirmed are discharged, providing a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part
ABIs 3rd Annual Mid-Level Professional Development Program to Be Held in New York in October
Contact: John Hartgen
703-894-5935
[email protected]
ABI’S 3RD ANNUAL MID-LEVEL PROFESSIONAL DEVELOPMENT PROGRAM TO BE HELD IN NEW YORK IN OCTOBER
August 24, 2011, Alexandria, Va.— The American
Bankruptcy Institute will hold its 3rd Annual Mid-Level Professional
Development Program on Oct. 28 at the Davis Polk & Wardwell
Conference Center in New York. This unique program is geared
specifically toward mid-level insolvency and restructuring professionals
and includes both technical and career-advancement sessions. Attendees
at the program will learn critical skills from a faculty that includes
the country’s top judges, attorneys, financial advisors,
investment bankers, restructuring professionals and clients. Former
Chief Restructuring Officer for the U.S. Treasury James E. Millstein of
Millstein & Co. LLC (Washington D.C.) will be the keynote speaker at
the program. Space is limited.
Advisory board co-chairs for the program are Douglas E.
Deutsch of Chadbourne & Parke, LLP (New York), Alan
D. Holtz of AlixPartners, LLP (New York) and Damian S.
Schaible of Davis Polk & Wardwell, LLP (New York). The
judicial chair for the conference is Bankruptcy Judge Shelley C.
Chapman (S.D.N.Y.).
Sessions for the Mid-Level Professional Development Program include:
· Methods for Achieving Consensual
Restructurings in Today’s Environment
· Career Development (How to Advance
within Your Firm and the Profession)
· Intercreditor Issues
· How Best to Serve Your Clients
· Case Study: Tribune
· Judges' Roundtable: Tips on
Practicing before the Bankruptcy Courts
All attendees will receive a complimentary copy of Collier’s
2011 Portable Pamphlet, which includes the full text of the
Bankruptcy Code, Federal Rules of Bankruptcy Procedure and Federal Rules
of Evidence. The book also includes text of additional statutory
provisions.
For more information on the Mid-Level Professional Development Program,
visit http://www.abiworld.org/PDP11.
Follow the conference live and contribute to the conversation on Twitter
by utilizing #MidPDP11.
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes over 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
ABIs CanadianAmerican Cross-Border Insolvency Symposium to Be Held on Nov. 7 in Toronto
Contact: John Hartgen
703-894-5935
[email protected]
ABI’S CANADIAN/AMERICAN CROSS-BORDER INSOLVENCY SYMPOSIUM TO BE HELD ON NOV. 7 IN TORONTO
September 1, 2011, Alexandria, Va. —
Bankruptcy practitioners handling international cases will not want to
miss the American Bankruptcy Institute’s (ABI) Canadian/American
Cross-Border Insolvency Symposium on Nov. 7 at the Fairmont Royal York
in Toronto. Experts from Canada and the U.S. will be discussing the
hottest topics in cross-border proceedings at the Symposium, and
attendees will have the opportunity to earn 6 hours of CLE/CPD credit,
as well as 7 hours of CPE credit.This year’s program will also be
co-hosted by the Annual Review of Insolvency Law, the Canadian
Association of Insolvency and Restructuring Professionals, the
Insolvency Institute of Canada and TMA Toronto. The co-chairs for the
Symposium are Steven G. Golick of Osler, Hoskin &
Harcourt LLP (Toronto) and Marcia L. Goldstein of Weil,
Gotshal & Manges LLP (New York).
Concurrent sessions include:
•
Too Big to Fail. Or Is It?
•
Labour-Relations Issues on Restructuring: The New Deal?
•
Ancillary Proceedings: Chapter 15/Section 18.6—What Really
Happens?
•
Cross-Border Workouts: A Roundtable. The Bear Pit Session!
•
North American Idol: Insights from Leading Turnaround Specialists
•
Where’s the Dough? What’s New in Financing Debtors?
•
Hot Topics
•
So, You Want to Be a Court Officer?
•
Who’s in Control?
•
To Infinity and Beyond: Where Have We Come From? Where Are We Now? Where
Are We Going?
The program also includes a special luncheon keynote by Paul Ingrassia,
a Pulitzer Prize-winning financial journalist and former president of
Dow Jones Newswires. For more information on the program schedule,
please click the following link:
http://www.abiworld.org/CANAM11/schedule.html
For more information on ABI’s Canadian/American Cross-Border
Insolvency Symposium, please visit http://www.abiworld.org/CANAM11. If
you have a Twitter account and would like to follow the conference or
contribute a post about the conference, please utilize #CanAmIS11.
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
ABIs Chicago Consumer Bankruptcy Conference to be Held October 11
Contact: John Hartgen
703-894-5935
[email protected]
ABI’S CHICAGO CONSUMER BANKRUPTCY CONFERENCE TO BE HELD OCTOBER 11
August 12, 2011, Alexandria, Va. — Chicago-area consumer bankruptcy practitioners will have the opportunity to examine current issues affecting the profession at the American Bankruptcy Institute’s (ABI’s) Foruth Annual Chicago Consumer Bankruptcy Conference on Oct. 11 at the Gleacher Center at The University of Chicago Booth School of Business. Faculty members include experienced local chapter 7 and 13 consumer attorneys, bankruptcy judges and panel trustees from the Northern District of Illinois and a representative from the Chicago Office of the U.S. Trustee. Attendees have the opportunity to earn 6.25 CLE credits, including 1.25 ethics credits.
Co-chairs for the Chicago Consumer Bankruptcy Conference are Brian L. Shaw of Shaw Gussis Fishman Glantz Wolfson & Towbin LLC (Chicago) and Bankruptcy Judge Eugene R. Wedoff (N.D. Ill.; Chicago).
Panel sessions include:
· Mortgages in Chapter 13
· The Rules and Jurisdiction of
Bankruptcy Appeals
· Divorce and Bankruptcy: When Does
One Specialist Need Another?
· Balancing the Practice of Consumer
Bankruptcy Law and Running a Business
· The Ethics of Getting Paid
The conference will also feature a keynote by Prof. Robert M. Lawless of the University of Illinois College of Law. For more information on ABI’s Consumer Bankruptcy Conference, please visit http://www.abiworld.org/Chicago11.
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
ABI Quick Poll Respondents Divided over Whether the Supreme Court Got it Right in Stern v. Marshall on Counterclaims
Contact: John Hartgen
703-894-5935
[email protected]
ABI QUICK POLL RESPONDENTS DIVIDED OVER WHETHER THE SUPREME COURT GOT IT RIGHT IN STERN V. MARSHALL ON COUNTERCLAIMS
August 4, 2011, Alexandria, Va.— Respondents
in ABI’s latest Quick Poll were evenly divided over whether the
Supreme Court got it right in Stern v. Marshall by holding that
bankruptcy courts lack constitutional authority to issue final decisions
on counterclaims grounded in state law. Forty-six percent agreed (30
percent “strongly agreed” and 16 percent “somewhat
agreed”) and 46 percent disagreed (38 percent “strongly
disagreed” and 8 percent “somewhat disagreed”) that
the Supreme Court was correct in ruling in Stern v. Marshall
that bankruptcy courts lack constitutional authority to issue final
decisions on counterclaims grounded in state law. Five percent did not
know or had no opinion on the question.
The Supreme Court on June 23 ruled 5-4 against the estate of actress
Anna Nicole Smith, saying that a bankruptcy judge's decision giving
millions to Smith (then known as Vickie Lynn Marshall) from the estate
of oil tycoon J. Howard Marshall was decided incorrectly because those
judges do not have the constitutional right to reach outside of
bankruptcy cases into a probate case. In an opinion written by Chief
Justice John Roberts, the Supreme Court decided that Congress did not
have the authority under the Constitution to give bankruptcy judges the
power to decide legal claims that are based entirely on state law and
that have nothing to do with federal law. The Court explained that
federal bankruptcy judges do not have life tenure or the same authority
that regular federal judges enjoy, and Congress went too far in giving
bankruptcy courts extra jurisdiction.
ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and
the public are invited to respond to a question on a timely bankruptcy
or insolvency issue. Visit http://www.abiworld.net/quickpoll/
to access the results of previous ABI Quick Polls.
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes over 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
July Consumer Bankruptcy Filings Fall 18 Percent from Last Year
Contact: John Hartgen
703-894-5935
[email protected]
JULY CONSUMER BANKRUPTCY FILINGS FALL 18 PERCENT FROM LAST YEAR
August 2, 2011, Alexandria, Va. - July consumer bankruptcies decreased 18 percent nationwide from July 2010, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The data showed that the overall consumer filing total for July reached 113,470, down from the 137,698 consumer filings recorded in July 2010. It was the seventh straight month of fewer bankruptcies in 2011 than last year.
'The continued decline in consumer bankruptcies in tandem with a sluggish economy is a reflection of the deleveraging of household debts and tightening of consumer credit over the past year,' said ABI Executive Director Samuel J. Gerdano. 'Should these trends persist, we expect to see fewer consumer bankruptcies in 2011 than were filed in 2010.'
The July 2011 filings also represented a 5 percent decrease from the June 2011 consumer bankruptcy total of 119,768 filings. The percentage of chapter 13 filings for July was 29 percent, a one percent increase from June.
###
ABI is the largest multi-disciplinary,
nonpartisan organization dedicated to research and education on matters
related to insolvency. ABI was founded in 1982 to provide Congress and
the public with unbiased analysis of bankruptcy issues. The ABI
membership includes more than 13,000 attorneys, accountants, bankers,
judges, professors, lenders, turnaround specialists and other bankruptcy
professionals, providing a forum for the exchange of ideas and
information. For additional information on ABI, visit www.abiworld.org. For
additional conference information, visit http://www.abiworld.org/
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor's available non-exempt property. Unsecured debts not reaffirmed are discharged, providing a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual's finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor's future earnings under a plan through which unsecured creditors are paid in whole or in part.
Total U.S. Bankruptcies in First Half of 2011 Down 8 Percent over First Half of 2010 Second Quarter Consumer Filings Increase 4 Percent from First Quarter
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Contact: Carolyn Kanon TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2011 DOWN 8 PERCENT OVER FIRST HALF OF 2010; SECOND QUARTER CONSUMER FILINGS INCREASE 4 PERCENT FROM FIRST QUARTER
August 5, 2011 Alexandria, Va. — The total number of U.S. bankruptcies filed during the first six months of 2011 dropped 8 percent over the same six-month period in 2010, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 745,968 during the first half of calendar year 2011 (January 1-June 30), compared to 810,209 cases filed over the same period in 2010. Total bankruptcy filings increased 4 percent, however, during the second quarter of 2011 (April 1-June 30), which totaled 379,790, from the 366,178 filings in the first quarter of 2011 (January 1-March 31) due to an increase in consumer bankruptcy filings. 'The broad trend of a leveling or even decline in consumer bankruptcies in tandem with a sluggish economy is a reflection of the deleveraging of household debts and tightening of consumer credit over the past year,' said ABI Executive Director Samuel J. Gerdano. 'Should these trends persist, we expect to see fewer consumer bankruptcies in 2011 than were filed in 2010.' Business filings decreased 15 percent for the six-month period ending June 30, 2011, to 24,680 from the first-half 2010 total of 29,059. Chapter 7 business liquidations also fell by 15 percent, as there were 17,284 in the first half of 2011 compared with the 20,385 business chapter 7 filings during the same period in 2010. Chapter 11 business reorganizations registered the sharpest decrease, as the 5,172 filings during the first half of 2011 represented a 16 percent drop from the 6,152 total chapter 11 business filings during the first half of 2010. Total business filings decreased slightly (1 percent) from 12,376 in the first quarter 2011 to 12,304 in the second quarter 2011. Filings by individuals or households with consumer debt decreased 8 percent to 721,288 for the six-month period ending June 30, 2011, from the 2010 first-half total of 781,150. Consumers filing for chapter 7 protection decreased 9 percent to 518,097 during the first half of 2011 from 571,417 during the first six months of 2010. Consumer chapter 13 filings dropped as well, decreasing 3 percent as 202,292 consumers filed for chapter 13 in the first half of 2011, down from 208,778 during the first half of 2010. The 367,486 total consumer filings for the second quarter of 2011 showed a 4 percent increase from the 353,802 total consumer filings in the first quarter of 2011. The 379,790 total filings for the second calendar quarter 2011 (April 1-June 30) represented a 10 percent decrease from the second quarter 2010 filing total of 422,061. Consumer filings also decreased 10 percent from 407,609 recorded in the second quarter of 2010 to 367,486 filings in the second quarter of 2011. Business filings decreased 15 percent from 14,452 in the second quarter of 2010 to 12,304 filings in the second quarter of 2011. The 1,529,560 total filings for the 12-month period ending June 30, 2011, represented a 3 percent overall decrease from the same period in 2010, which totaled 1,572,597. The bankruptcy filing rate per thousand U.S. residents totaled 4.85 for all chapters during the 12-month period ending June 30, 2011, as 3.44 Americans per thousand filed for chapter 7 while 1.37 per thousand filed for chapter 13 bankruptcy. Nevada maintained its position as the state with the highest per capita filing rate in the country, with 10.13 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 7.62. The state with the highest per capita filing rate for chapter 13 bankruptcy was Alabama at 3.92 per thousand for the 12-month period ended June 30, 2011. Non-business filings for the 12-month period ending June 30, 2011, were down to 1,477,426, a 2 percent decrease from the 1,512,989 total non-business filings over the same period in 2010. Business filings for the 12-month period ending June 30, 2011, totaled 52,134, down 13 percent from the 59,608 business bankruptcy petitions filed in the 12-month period ending June 30, 2010. The 1,083,671 total chapter 7 filings for the 12-month period ending June 30, 2011, represent a 4 percent decrease from the 1,133,320 filings from the same period in 2010. Total chapter 11 filings decreased 11 percent to 12,714 in the 12-month period ending June 30, 2011, from 14,272 during the same period in 2010. Total chapter 13 filings increased 2 percent to 432,333 in the 12-month period ending June 30, 2011, from 424,242 during the same period last year. Chapter 12 filings increased 8 percent from 660 in the 12-month period ending June 30, 2010, to 717 for the same period in 2011. Chapter breakdowns of BUSINESS filings for the 3-month period ending June 30, 2011: 8,669 chapter 7s; 2,567 chapter 11s; 166 chapter 12s; and 881 chapter 13s. Chapter breakdown of NON-BUSINESS filings for the 3-month period ending June 30, 2011: 265,759 chapter 7s; 441 chapter 11s; and 101,286 chapter 13s. Districts with the HIGHEST PERCENTAGE INCREASE in total filings for the 12-month period ending June 30, 2011 (compared to the identical period in 2010):
Districts with the HIGHEST PERCENTAGE DECREASE in total filings for the 12-month period ending June 30, 2011 (compared to the identical period in 2010):
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit http://www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html. *Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute. Chapter 7 of the Bankruptcy Code is available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor's available non-exempt property. Unsecured debts not reaffirmed are discharged, providing a fresh financial start. Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual's finances through a court-approved reorganization plan. Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming. Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor's future earnings under a plan through which unsecured creditors are paid in whole or in part.
| |
August Consumer Bankruptcy Filings Fall 11 Percent from Last Year
Contact: John Hartgen
703-894-5935
[email protected]
AUGUST CONSUMER BANKRUPTCY FILINGS FALL 11 PERCENT FROM LAST YEAR
September 2, 2011, Alexandria, Va. — August
consumer bankruptcies decreased 11 percent nationwide from August 2010,
according to the American Bankruptcy Institute (ABI), relying on data
from the National Bankruptcy Research Center (NBKRC). The data showed
that the overall consumer filing total for August declined to 113,432,
down from the 127,028 consumer filings recorded in August 2010. Each
month of 2011 has recorded fewer bankruptcies than last year.
“Consumer bankruptcies continue to decline over the past year as
households deleverage and consumer credit remains tight,” said ABI
Executive Director Samuel J. Gerdano. “As a
result, total consumer filings will be lower in 2011 than the 1.5
million consumer cases in 2010.”
The August 2011 filings also represented a less than a 1 percent
decrease from the July 2011 consumer bankruptcy total of 113,470
filings. The percentage of chapter 13 filings for August was 30 percent,
a one percent increase from July.
###
ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes more than
13,000 attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals, providing a
forum for the exchange of ideas and information. For additional
information on ABI, visit www.abiworld.org. For additional
conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to
up-to-date research and statistics on bankruptcy filings. The database
contains complete information dating back to 1995. For more information
on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the
American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both individual and
business debtors. Its purpose is to achieve a fair distribution to
creditors of the debtor’s available non-exempt property.
Unsecured debts not reaffirmed are discharged, providing a fresh
financial start.
Chapter 11 of the Bankruptcy Code is available for both business and
consumer debtors. Its purpose is to rehabilitate a business as a going
concern or reorganize an individual’s finances through a
court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt
relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with
regular income whose debts do not exceed specific amounts; it is
typically used to budget some of the debtor’s future earnings
under a plan through which unsecured creditors are paid in whole or in
part.