March Consumer Bankrutcy Filings Increase 41 Percent Over Last Year
MARCH CONSUMER BANKRUPTCY FILINGS INCREASE 41 PERCENT OVER LAST YEAR
Va.— U.S. consumer bankruptcy filings increased 41 percent
nationwide in March from 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 March consumer filing
total of 121,413 represented nearly a 24 percent increase from the
February total of 98,344. Chapter 13 filings constituted 25 percent of
all consumer cases in March, nearly a 5 percent decrease from
“Given the great financial stress facing U.S. households today, the March numbers are consistent with our prediction of over 1.4 million consumer filings for 2009,” said ABI Executive Director Samuel J. Gerdano.
*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.