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Bankruptcy Filings Through First Three Quarters of 2007 Eclipse Last Years Totals

Contact: John Hartgen
             703-739-0800
             jhartgen@abiworld.org

 

BANKRUPTCY FILINGS THROUGH FIRST THREE QUARTERS OF 2007 ECLIPSE LAST YEAR’S TOTALS

November 19, 2007, Alexandria, Va. The 623,399 total U.S. bankruptcies filed during the first three quarters of 2007 (Jan. 1 – Sept. 30) represented a 40.16 percent increase over the 444,789 cases filed over the same period in 2006, according to data released today by the Administrative Office of the U.S. Courts. The totals for both consumer and business filings during the first three quarters of 2007 also eclipsed those reached for the full calendar year of 2006.

“Bankruptcies are up sharply from a year ago this period, reflecting a growing vulnerability in household economics,” said ABI Executive Director Samuel J. Gerdano.  “The continued stress on the housing market will likely fuel a continuation of this trend into 2008.”

Filings by individuals or households with consumer debt increased 40.15 percent to 603,139 for the nine-month period ending Sept. 30, 2007, from 430,364 filings during the same period in 2006. The overall percentage of consumers filing for chapter 13 protection fell slightly from 41.41 percent during the first three quarters of 2006 (Jan. 1-Sept. 30) to 38.87 percent over the same period in 2007. Conversely, the percentage of chapter 7 consumer filers increased to 61.06 percent during the first nine months of 2007 from the 58.50 percent recorded during the same period of 2006.

Business filings for the nine-month period ending Sept. 30, 2007, totaled 20,260, representing a 40.45 percent increase over the similar nine-month 2006 total of 14,425. Chapter 7 business liquidations totaled 13,290 in the first three quarters of 2007, a 57.60 percent increase over the 8,433 business chapter 7 filings during the same period in 2006. Chapter 11 business reorganizations also rose from 3,644 in the first three quarters of 2006 to 4,130 in the same period of 2007, a 13.34 percent increase.

The 801,269 total filings for the 12-month period ending Sept. 30 were down 28 percent from the same period in 2006, which totaled 1,112,542 filings, a figure that includes a surge in cases filed before the implementation date of a major change in the law in 2005. The bankruptcy filing rate per thousand U.S. residents totaled 2.62 for all chapters during the 12-month period ending Sept. 30, 2007, as 1.58 Americans per thousand filed for chapter 7 while 1.02 per thousand filed for chapter 13 bankruptcy. Tennessee was the state with the highest per capita filing rate in the country, with 6.19 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 13 filings at 3.86. The state with the highest per capita filing rate for chapter 7 bankruptcy was Indiana at 3.20 per thousand for the 12-month period ended Sept. 30, 2007.

Nonbusiness filings for the 12-month period ending Sept. 30, 2007, totaled 775,344, down 28.55 percent from the 1,085,209 total nonbusiness filings experienced over the same period in 2006. Business filings for the 12-month period ending Sept. 30, 2007, totaled 25,925, down 5.15 percent from the 27,333 bankruptcy petitions filed in the 12-month period ending Sept. 30, 2006.

The 484,162 total chapter 7 filings for the 12-month period ending Sept. 30, 2007, represent a 41.89 percent decrease from the 833,147 filings from the same period in 2006. Chapter 11 filings also declined, falling 1.92 percent to 5,888 in 2007 from 6,003 in 2006. Chapter 12 filings decreased as well, falling 4 percent from 376 in 2006 to 361 in 2007. However, total chapter 13 filings increased 13.87 percent to 310,802 in the 12-month period ending Sept. 30, 2007, from 272,937 in the same period last year.

BUSINESS FILINGS for the 3-month period ending Sept. 30, 2007, totaled 7,167, up 35.64 percent from the 5,284 bankruptcy business cases filed in the same period in 2006. NON-BUSINESS FILINGS for the 3-month period ending Sept. 30, 2007, increased 27.66 percent from 165,862 in 2006 to 211,742 in 2007.

The chapter* breakdown of BUSINESS filings for the 3-month period ending Sept. 30, 2007, is: 4,816 chapter 7s, 1,410 chapter 11s, 71 chapter 12s and 844 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending Sept. 30, 2007, is: 127,192 chapter 7s, 173 chapter 11s and 84,376 chapter 13s.

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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.

*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 2010 Up 14 Percent over First Half of 2009

Contact: John Hartgen
             703-894-5935
             jhartgen@abiworld.org

TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2010 UP 14 PERCENT OVER FIRST HALF OF 2009

August 17, 2010, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first six months of 2010 increased 14 percent over the same six-month period in 2009, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 810,209 during the first half of the calendar year of 2010 (January 1-June 30), compared to 711,550 cases filed over the same period in 2009. The totals represent the highest number of filings for the first six months of a calendar year since 2005, when the Bankruptcy Code was amended.

“Bankruptcy continues to be the last resort for many Americans seeking financial relief from household debt, unemployment and the economic downturn,” said ABI Executive Director Samuel J. Gerdano. “The first half 2010 filings show that bankruptcies are on pace to surpass 1.6 million by year end.”

Business filings decreased 4 percent for the six-month period ending June 30, 2010, to 29,059 from the first-half 2009 total of 30,333. Chapter 11 business reorganizations registered the sharpest decrease, as the 6,152 filings during the first half of 2010 represented a 17 percent drop from the 7,396 total chapter 11 business filings during the first half of 2009. Chapter 7 business liquidations remained nearly unchanged, as there were 20,385 in the first half of 2010, a half percent increase from the 20,375 business chapter 7 filings during the same period in 2009.

Filings by individuals or households with consumer debt increased 15 percent to 781,150 for the six-month period ending June 30, 2010, from the 2009 first-half total of 681,217. Consumers filing for chapter 7 protection increased 17 percent to 571,417 during the first half of 2010 from 489,128 during the first six months of 2009. Consumer chapter 13 filings increased as well, rising 9 percent as 208,778 consumers filed for chapter 13 in the first half of 2010 from 191,458 during the first half of 2009.

The 422,061 total filings for the second calendar quarter 2010 (April 1-June 30) represented a 11 percent increase from the second quarter 2009 filing total of 381,073. Consumer filings increased 12 percent from 365,059 recorded in the second quarter of 2009 to 407,609 filings in the second quarter 2010. Business filings decreased 10 percent from 16,014 in the second quarter 2009 to 14,452 filings in the second quarter of 2010.

The 1,572,597 total filings for the 12-month period ending June 30, 2010, represented a 20 percent increase from the same period in 2009, which totaled 1,306,315. The bankruptcy filing rate per thousand U.S. residents totaled 5.05 for all chapters during the 12-month period ending June 30, 2010, as 3.64 Americans per thousand filed for chapter 7 while 1.36 per thousand filed for chapter 13 bankruptcy.

Nevada maintained its position as the state with as the state with the highest per capita filing rate in the country, with 11.74 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 8.71. The state with the highest per capita filing rate for chapter 13 bankruptcy was Alabama at 4.16 per thousand for the 12-month period ended June 30, 2010.

Nonbusiness filings for the 12-month period ending June 30, 2010, were up to 1,521,989, a 21 percent increase from the 1,251,294 total nonbusiness filings over the same period in 2009. Business filings for the 12-month period ending June 30, 2010, totaled 59,608, up 8 percent from the 55,021 bankruptcy petitions filed in the 12-month period ending June 30, 2009.

The 1,133,320 total chapter 7 filings for the 12-month period ending June 30, 2010, represent a 25 percent increase from the 907,603 filings from the same period in 2009. Total chapter 11 filings increased 2 percent to 14,272 in the 12-month period ending June 30, 2010 from 13,951 during the same period in 2009. Total chapter 13 filings also increased 10 percent to 424,242 in the 12-month period ending June 30, 2010, from 384,187 during the same period last year. Chapter 12 filings increased 56 percent from 422 in the 12-month period ending June 30, 2009 to 660 for the same period in 2010.

Chapter breakdowns of BUSINESS filings for the 3-month period ending June 30, 2010: 10,311 chapter 7s; 2,859 chapter 11s; 194 chapter 12s; and 1,071 chapter 13s.

Chapter breakdown of NON-BUSINESS filings for the 3-month period ending June 30, 2010: 299,369 chapter 7s; 511 chapter 11s; and 107,727 chapter 13s.

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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 12,600 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.

*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 8 Percent This Month

Contact: John Hartgen
             703-894-5935
             jhartgen@abiworld.org

AUGUST CONSUMER BANKRUPTCY FILINGS FALL 8 PERCENT THIS MONTH

 

September 1, 2010, Alexandria, Va. The 127,028 consumer bankruptcies filed in August represented a 8 percent decrease nationwide over the 137,698 filings recorded in July 2010, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). Though a decrease from the previous month, NBKRC’s data also showed that the August 2010 consumer filings represented a 6 percent increase from the 119,874 consumer filings recorded in August 2009. Chapter 13 filings constituted 29 percent of all consumer cases in August, a slight increase from July.

“While monthly filings are volatile, consumer bankruptcies are still the highest they have been since Congress overhauled the bankruptcy law in 2005,” said ABI Executive Director Samuel J. Gerdano. “Consumer filings remain on track to top 1.6 million filings 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 12,600 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.

 

Consumer Bankruptcy Filings Reach Highest Monthly Total Since October 2005

Contact: John Hartgen
              (703) 739-0800
             
jhartgen@abiworld.org

 

CONSUMER BANKRUPTCY FILINGS REACH HIGHEST MONTHLY TOTAL SINCE 2005 BANKRUPTCY LAW OVERHAUL

August 4, 2009, Alexandria, Va.— U.S. consumer bankruptcy filings reached 126,434 in July, the highest monthly total since the Bankruptcy Abuse Prevention and Consumer Protection Act was implemented in October 2005, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The July 2009 consumer filing total represented a 34.3 percent increase nationwide from the same period a year ago, and an 8.7 percent increase over the June 2009 consumer filing total of 116,365. Chapter 13 filings constituted 28.3 percent of all consumer cases in July, slightly above the June rate.
 
'Today's bankruptcy filing number reflects the sustained and growing financial stress on U.S. households,' said ABI Executive Director
Samuel J. Gerdano. 'Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of 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 12,000 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.

 

Consumer Filings Up Nearly 33 Percent in 2008

Contact: John Hartgen
              (703) 739-0800
             
jhartgen@abiworld.org

CONSUMER BANKRUPTCY FILINGS UP NEARLY 33 PERCENT IN 2008

January 5, 2009, Alexandria, Va. U.S. consumer bankruptcy filings increased nearly 33 percent nationwide in 2008 from the previous year, 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 the 2008 calendar year (Jan. 1 – Dec. 31, 2008) reached 1,064,927 compared to the 801,840 total consumer filings recorded during 2007.

“Consumers are under great financial stress, with no immediate end in sight,” said ABI Executive Director Samuel J. Gerdano. “We expect the upward spike in personal bankruptcies to continue in 2009.”

However, NBKRC’s data also showed that the 84,926 consumer filings recorded in December represented a 15 percent decrease from the 99,925 filings in November. Chapter 13 filings constituted 32 percent of all consumer cases in December, a slight decrease from November.

###

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.

July Consumer Bankruptcy Filings Up 9 Percent from Last Month Year

Contact: John Hartgen
             703-894-5935
             jhartgen@abiworld.org

JULY CONSUMER BANKRUPTCY FILINGS UP 9 PERCENT FROM LAST MONTH, YEAR

 

August 3, 2010, Alexandria, Va. The 137,698 consumer bankruptcies filed in July represented a 9 percent increase nationwide over the 126,434 filings recorded in July 2009, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). NBKRC’s data also showed that the July consumer filings represented a 9 percent increase from the 126,270 consumer filings recorded in June 2010. Chapter 13 filings constituted 28 percent of all consumer cases in July, a slight increase from June.

“Debt burdens, unemployment and an uncertain economic climate continue to weigh on consumers,” said ABI Executive Director Samuel J. Gerdano. “The pace of consumer filings this year remains on track to top 1.6 million filings.”

###

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 12,600 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.

 

April Consumer Bankruptcy Filings Up 15 Percent over Last Year

Contact: John Hartgen
             703-894-5935
             jhartgen@abiworld.org

APRIL CONSUMER BANKRUPTCY FILINGS UP 15 PERCENT OVER LAST YEAR

May 3, 2010, Alexandria, Va. The 144,490 consumer bankruptcies filed in April represented a 15 percent increase nationwide over the 125,618 filings recorded in April 2009, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). NBKRC’s data also showed that the April consumer filings represented a 3 percent decrease from the 149,268 consumer filings recorded in March 2010. Chapter 13 filings constituted 25 percent of all consumer cases in April, remaining unchanged from March.

“As Congress continues to consider measures to protect and assist consumers, bankruptcy is still the last resort for families coping with unemployment and increasing debt loads,” said ABI Executive Director Samuel J. Gerdano. “Consumer filings this year will likely surpass 1.5 million filings.”

###

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 12,600 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.

June Consumer Bankruptcy Filings Increase Nearly 37 Percent over Previous Year

Contact: John Hartgen
             703-739-0800
             jhartgen@abiworld.org

JUNE CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 37 PERCENT OVER PREVIOUS YEAR

July 9, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased 37.1 percent nationwide in June from the previous year, according to the American Bankruptcy Institute (ABI). Relying on data from the National Bankruptcy Research Center (NBKRC), overall consumer filings totaled 68,559 in June, nearly a 2 percent decrease from the 69,684 filings in May. Chapter 13 filings constituted 38.3 percent of all consumer cases in June, a slight increase over the previous three months.  

'While bankruptcy filings are up more than 30 percent from the same period last year, they are less than half of what they were in 2005,' said Samuel J. Gerdano, ABI Executive Director. 'However, the underlying concerns of high debt loads are still a constant, pointing to rising filings in the future.'

###

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.

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.

Bankruptcy Filings Increase 66 Percent over First Quarter 2006

Contact: John Hartgen
             703-739-0800
             jhartgen@abiworld.org

BANKRUPTCY FILINGS INCREASE 66 PERCENT OVER FIRST QUARTER 2006

June 27, 2007, Alexandria, Va. The total number of U.S. bankruptcies filed during the first three months of 2007 increased 65.83 percent over the same period in 2006 in all bankruptcy court districts, according to data released today by the Administrative Office of the U.S. Courts. As total filings reached 193,641 during the first calendar year quarter of 2007 (January 1-March 31), the total surpassed the 116,771 new cases that were filed over the same period in 2006. They also represent a 9.03 percent increase from the 177,599 bankruptcies filed during the fourth quarter of 2006 (Oct. 1 – Dec. 31, 2006).

'Though bankruptcy filings are still low from a historical outlook, new cases are being filed at much higher rates than a year ago, as more households feel the stress of high debt burdens, a trend that is likely to continue,' said ABI Executive Director Samuel J. Gerdano.

Consumer filings increased 66.27 percent to 187,361 for the three-month period ending March 31, 2007 from the 2006 first quarter total of 112,685. They also represent an 8.92 percent increase from the fourth quarter of 2006, which recorded a total of 172,013 nonbusiness filings. The percentage of consumers filing for chapter 13 protection fell slightly from 43.76 percent during the first quarter of 2006 (January 1-March 31) to 39.27 percent over the same period in 2007. The first quarter 2007 percentage of chapter 13 consumer filers is also down from the 42.47 percent recorded in the fourth quarter of 2006.

Business filings for the three-month period ending March 31, 2007 totaled 6,280, representing a 53.7 percent increase over the first quarter 2006 total of 4,086. The first quarter 2007 business filing total also represented a 12.42 percent increase over the fourth quarter 2006 total of 5,586.

While representing an increase over the first quarter 2006 totals, the 2007 first quarter filings are still below the 341,662 first quarter filing average recorded since 1997. This filing shortfall reflects the changes brought about by the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The new law, implemented on Oct. 17, 2005, requires that consumers first go through credit counseling before being eligible for bankruptcy. The new law also reduces the scope of bankruptcy relief.

The 695,575 total filings for the 12-month period ending March 31 were down 61.24 percent from the same period in 2006, which totaled 1,794,795 filings. Nonbusiness filings for the 12-month period ending March 31, 2007, totaled 673,615, down 61.72 percent from the 1,759,503 total nonbusiness filings in the 12-month period ending March 31, 2006. Business filings for the 12-month period ending March 31, 2007, totaled 21,960, down 37.78 percent from the 35,292 bankruptcy petitions filed in the 12-month period ending March 31, 2006.

The 413,294 total chapter 7 filings for the 12-month period ending March 31, 2007, represent a 71.14 percent decrease from the 1,432,074 filings from the same period in 2006. Chapter 13 filings fell 22.24 percent to 276,649 in the 12-month period ending March 31, 2007 from 355,756 in the same period last year. Chapter 11 filings also declined, falling 19.98 percent to 5,199 in 2007 from 6,497 in 2006. Chapter 12 filings rose 1.64 percent from 366 in 2006 to 372 in 2007.

BUSINESS FILINGS for the 3-month period ending March 31, 2007, totaled 6,280, up 53.7 percent from the 4,086 bankruptcy business cases filed in the same period in 2006. NON-BUSINESS FILINGS for the 3-month period ending March 31, 2007, increased 66.27 percent from 112,685 in 2006 to 187,361 in 2007.

The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2007, is: 4,071 chapter 7s, 1,283 chapter 11s, 104 chapter 12s and 817 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2007, is: 113,659 chapter 7s, 123 chapter 11s and 73,579 chapter 13s.

Districts with the LOWEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending March 31, 2007 (compared to the identical period in 2006):

  1. District of the Northern Mariana Islands: 27.59%
  2. Western District of Tennessee: 33.93%
  3. Southern District of Georgia: 35.65%   
  4. Northern District of Georgia: 38.28%
  5. Middle District of Tennessee: 38.49%

Districts with the HIGHEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending March 31, 2007 (compared to the identical period in 2006):

  1. Eastern District of Louisiana: 78.87% 
         
  2. Eastern District of Oklahoma: 77.90%
  3. Southern District of West Virginia: 77.24%      
  4. Western District of Oklahoma: 77.18%
  5. District of Arizona: 75.24%

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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.

*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.

March Consumer Bankrutcy Filings Increase 41 Percent Over Last Year

Contact: John Hartgen
              (703) 739-0800
             
jhartgen@abiworld.org

 

MARCH CONSUMER BANKRUPTCY FILINGS INCREASE 41 PERCENT OVER LAST YEAR

April 2, 2009, Alexandria, 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 February.

“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.

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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 12,000 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.

*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.

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