Consumer Bankruptcies to Increase by 20 Percent or More in 2007 Survey Predicts
SURVEY PREDICTS CONSUMER BANKRUPTCIES TO INCREASE BY 20 PERCENT OR MORE IN 2007
January 19, 2007, Alexandria, Va. — A majority (61 percent) of respondents in a recent American Bankruptcy Institute online poll said that consumer bankruptcy filings will increase by at least 20 percent on a national basis in 2007. Twenty-seven percent of respondents thought that consumer bankruptcies will increase by 20 percent in 2007, while 34 percent thought that consumer filings would increase by more than 20 percent on a national basis.
Thirty-one percent of respondents thought that filings would only increase by 10 percent or less on a national basis in 2007. Twenty-two percent of respondents thought that consumer filings would increase by 10 percent, while nine percent of respondents thought that consumer bankruptcy totals would remain roughly the same as 2006. Eight percent did not know or had no opinion on the issue.
Consumer bankruptcies decreased dramatically last year to fewer than 600,000 cases, falling to their lowest levels since the 1980s, after the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The decrease followed a spike in filings in 2005, when consumers rushed to file before BAPCPA was implemented on Oct. 17. Last year’s decline has led to much speculation as to whether consumer filings will return to pre-BAPCPA levels and the possible timeframe involved.
ABI members and members of the public were welcome to submit their response to the statement: “In 2007, consumer bankruptcy filings on a national basis will (A) stay roughly the same as in 2006; (B) increase by 10 percent; (C) increase by 20 percent; D) increase by more than 20 percent.” The latest ABI Quick Poll was open for voting from Jan. 12 - Jan. 18.
ABI’s weekly 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 more than 11,500 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.