November Consumer Bankruptcy Filings Increase 39 Percent over Last Year
Contact: John Hartgen
NOVEMBER CONSUMER BANKRUPTCY FILINGS INCREASE 39 PERCENT OVER LAST YEAR
December 3, 2008, Alexandria, Va.— U.S. consumer bankruptcy filings increased 39.2 percent nationwide in November 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 November consumer filing total of 99,925 represented a slight decrease from the October total of 106,266. Chapter 13 filings constituted 32.7 percent of all consumer cases in November, a slight increase from October.
“While new bankruptcies dipped slightly in November from the yearly high reached last month, we are still on track for nearly 1.1 million new cases this year, the highest figure since Congress changed the bankruptcy laws in 2005,” said ABI Executive Director Samuel J. Gerdano. “We expect the alarming rate of personal bankruptcies to continue well into 2009.”
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 11,700 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.