August Consumer Bankruptcy Filings Up 24 Percent over Last Year
Contact: John Hartgen
AUGUST CONSUMER BANKRUPTCY FILINGS UP 24 PERCENT OVER LAST YEAR
September 2, 2009, Alexandria,
Va.— The 119,874 consumer bankruptcy filings in August represented
a 24 percent increase over last year’s monthly total, according to
the American Bankruptcy Institute (ABI), relying on data from the
National Bankruptcy Research Center (NBKRC). Although an increase over
the previous year, the August 2009 consumer filings represented a 5
percent decrease from the July 2009 total of 126,434.
Chapter 13 filings constituted
28.3 percent of all consumer cases in August, unchanged from the July
'Consumers are continuing to turn to bankruptcy as a shield from the sustained financial pressures of today’s economy,' said ABI Executive Director Samuel J. Gerdano. 'As a result, we expect consumer filings to top 1.4 million this year.'
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 12,300 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
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.