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August Consumer Bankruptcy Filings Up 29 Percent Over Previous Year Set Post-BAPCPA Record for Single Month

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

AUGUST CONSUMER BANKRUPTCY FILINGS UP 29 PERCENT OVER PREVIOUS YEAR; SET POST-BAPCPA RECORD FOR SINGLE MONTH

 

September 3, 2008, Alexandria, Va. U.S. consumer bankruptcy filings increased 29.2 percent nationwide in August 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 August consumer filing total of 96,413 also set a single month high since the October 2005 effective date of the new bankruptcy law. Chapter 13 filings constituted 33.2 percent of all consumer cases in August, a slight increase from July. 

“The latest data reflect the growing trend of U.S. consumers to seek bankruptcy as a way out of financial problems,” said ABI Executive Director Samuel J. Gerdano.   “We expect bankruptcies to exceed 1.1 million by year end.”

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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 11,700 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.

 

Consumer Bankruptcy Filings Increase 9 Percent in 2010

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

CONSUMER BANKRUPTCY FILINGS INCREASE 9 PERCENT IN 2010


 
January 3, 2011, Alexandria, Va.— U.S. consumer bankruptcies increased 9 percent nationwide in 2010 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 2010 calendar year (Jan. 1 – Dec. 31, 2010) reached 1,530,078 compared to the 1,407,788 total consumer filings recorded during 2009. Annual consumer filings have increased each year since the Bankruptcy Abuse Prevention and Consumer Prevention Act was enacted in 2005.
 
“The steady climb of consumer filings notwithstanding the 2005 bankruptcy law restrictions demonstrate that families continue to turn to bankruptcy as a result of high debt burdens and stagnant income growth,” said ABI Executive Director Samuel J. Gerdano. “We expect that consumer filings will continue to rise in 2011.”
 
NBKRC’s data also showed that the 118,146 consumer filings recorded in December 2010 represented a 4 percent increase from the 113,274 filings in December 2009. The December 2010 consumer filings also represented a 3 percent increase from the November 2010 total of 114,587. Chapter 13 filings constituted 30 percent of all consumer cases in December, a slight increase from November.

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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.
 
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.   

Bankruptcies to Increase More Than 35 Percent in 2009 According to Latest ABI Quick Poll

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

 

BANKRUPTCIES TO INCREASE MORE THAN 35 PERCENT IN 2009, ACCORDING TO LATEST ABI QUICK POLL

January 26, 2009, Alexandria, Va. — A majority of respondents (65 percent) in a recent ABI Quick Poll predicted that bankruptcies in 2009 would increase by at least 35 percent over the nearly 1.1 million cases filed in 2008. Fifty-three percent of respondents predicted that filings would increase by 35 percent or more while 12 percent thought that filings would increase by about 35 percent.  

Thirty-three percent predicted that the 2009 filing total would represent an increase of 30 percent or less from the 2008 figure. Seventeen percent of respondents thought that bankruptcies would increase 30 percent, while 16 percent thought that the 2009 filings would increase 25 percent or less over the 2008 total.

Bankruptcies totaled nearly 1.1 million in 2008, with more than 97 percent of the cases filed by consumers, representing an increase of more than 30 percent over the 2007 filing total. Bankruptcies have increased nearly 35 percent each year since 2006, when filings reached their lowest levels since the 1980s following the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

ABI members and members of the public were welcome to submit their response to the statement: “Bankruptcies rose more than 30 percent in 2008 to nearly 1.1 million new cases, with more than 97 percent of cases filed by consumers. Filings will rise by what percentage in 2009?”

ABI’s 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.

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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 nearly 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.

 

ABIs New Interactive Statistics Page Provides Better Tools for Examining Bankruptcy Statistics

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

ABI’S NEW INTERACTIVE STATISTICS PAGE PROVIDES BETTER TOOLS FOR EXAMINING BANKRUPTCY STATISTICS

 

May 6, 2010, Alexandria, Va. The American Bankruptcy Institute (ABI) has created new online interactive charts, graphs and other easy-to-use tools to allow members of the public to gather statistical information on bankruptcy filings dating back to 1980. The new interactive charts improve upon the information currently on ABI’s “Bankruptcy Statistics” page by providing the user the ability to easily select and search bankruptcy statistical information provided by the Administrative Office of the U.S. Courts. Users may research filings by chapter of the Bankruptcy Code (7, 11, 12 or 13), type (consumer or business), state, circuit, year or some combination of these search categories.

Please click the following link to view ABI’s new interactive statistics page: http://www.abiworld.org/bkstats/index.html

The interactive website provides instructions on the home page and individual instructions for the four different sections. The easy-to-use interactive features also allow you to generate data from the graphs, convert information to a PDF document or Excel chart, or to create an image. If you need any assistance using this webpage or would like to reproduce this information in electronic or written format, please contact John Hartgen at 703-894-5935 or jhartgen@abiworld.org

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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.

 

April Consumer Bankruptcy Filings Increase Nearly 48 Percent over Previous Year

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

APRIL CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 48 PERCENT OVER PREVIOUS YEAR

May 2, 2008, Alexandria, Va. U.S. consumer bankruptcy filings increased 47.7 percent nationwide in April 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 April consumer filing total of 92,291 also represented a 7.1 percent increase from the 86,165 filings in March. Chapter 13 filings constituted 31.14 percent of all consumer cases in April, a slight decrease from March. 

“The sharp spike in consumer bankruptcies reflects the growing financial stress faced by American families, saddled with household debt and mortgage woes,” said ABI Executive Director Samuel J. Gerdano. “We expect consumer bankruptcies to top 1 million new cases this year'.

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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 11,700 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.

Total Bankruptcies Eclipse the 2 Million Mark in 2005 as Consumers File in Record Numbers Prior to Implementation of New Bankruptcy Law

Contact: John Hartgen

              Phone: 703-739-0800

              Email: jhartgen@abiworld.org

 

Total Bankruptcies Eclipse the 2 Million Mark in 2005 as Consumers File in Record Numbers Prior to Implementation of New Bankruptcy Law

March 24, 2006 Alexandria, Va. — Bankruptcy filings eclipsed the two million mark for the first time in the United States as 2,078,415 filings were reported in calendar year 2005, according to data from the Administrative Office of the U.S. Courts. The total in this 12-month period ending December 31, 2005, represents a record 30 percent increase compared with the 1,597,462 total filings for the same period in 2004.

Driven largely in response to the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), consumers provided 98 percent of the overall total filings, the highest concentration of consumer filings on record, as nonbusiness filings during the 12-month period ending December 31, 2005, increased to a record 2,039,214, which was a 31 percent increase from the total of 1,563,145 of the same period in 2004. Business filings also increased to 39,201 for the 12-month period ending December 31, 2005, representing a 14 percent increase from the total of 34,317 from same period in 2004. This is the highest total of business bankruptcies in a calendar year since 2001’s total of 40,099.

“It is ironic that, at least in the short term, a law Congress hoped would reduce bankruptcies instead caused the largest upward spike in history,” said Samuel J. Gerdano, ABI Executive Director.  “Bankruptcies have in fact fallen dramatically so far in 2006 under the new, more-restrictive law,” he added.

The record high of 667,431 bankruptcies recorded during the 4th calendar quarter of 2005 (October 1-December 31, 2005), is representative of the many debtors who rushed to file prior to the Oct. 17 implementation date of BAPCPA. October 2005 filings alone totaled 630,497, representing 95 percent of the filings for the three-month period and 30 percent of the 12-month period ending December 31, 2005. Nonbusiness filings in October 2005 reached 619,588, which represented 30 percent of the nonbusiness filings for the 12- month period ending December 31, 2005, and 95 percent of the 654,633 total nonbusiness filings for the 4th quarter of 2005. The 10,909 October business filings were representative of 28 percent of the 12-month period ending December 31, 2005 business filings and 85 percent of the 12,798 business filings for the 4th quarter 2005.

Largely as a result of the BAPCPA, dramatic decreases in filings were seen during the months of November and December 2005 as the combined filings of 36,934 for those two months represented just 1.78 percent of the total 12-month period ending December 31, and 6 percent for the 4th quarter 2005. November’s total filings dropped to 14,324, which represented less than one percent (0.69%) of the total for the 12-month period ending December 2005 and 2 percent of the 4th quarter total. The total of 13,643 nonbusiness filings in November was representative of less than one percent of the total nonconsumer filings (0.67%) for the 12-month period ending December 31, 2005 and just 2 percent of the 4th calendar quarter nonbusiness filings. Business filings experienced a similar decline as the 681 filings in November represented less than 2 percent (1.74%) for CY2005 and 5 percent of the 2005 4th quarter’s total of 12,798. By comparison, 2004 totals for the month of November were 122,796 total filings, 2,643 business filings and 120,153 nonbusiness filings, each representative of nearly 8 percent of the 12-month total for their respective categories.

Total filings increased in December 2005 to 22,610, which represented a 63 percent increase over November total filings, but just over 1 percent of the 12-month period ending December 31, 2005 total (1.09%) and just over 3 percent (3.39%).for the 4th quarter 2005. December nonbusiness filings reached 21,402, representing just over one percent (1.05%) of the total nonbusiness filings for the 12-month period ending December 31, 2005, and only 3 percent of the 4th quarter 2005 nonbusiness filings. December business filings increased as well to 1,208, but only comprised 3 percent of the total business filings for the 12-month period and represented just over 9 percent of the 4th quarter total business filings. By comparison, 2004 totals for the month of December were 118,193 total filings, 2,493 business filings and 115,700 nonbusiness filings. Each was representative of just over seven percent of the 12-month total for their respective categories.

However, the 667,431 filings in the 4th quarter of 2005 (October 1-December 31, 2005) represent an 80 percent increase in comparison to the 371,668 filings for the same quarter of 2004 (October 1-December 31, 2004) and a 23 percent increase from the previous record total 542,002 from the 3rd quarter of 2005 (July 1- September 30, 2005).

Of the total number of bankruptcy filings in the 12-month period ending December 31, 2005, there were 1,659,017 chapter 7 filings, a 46 percent increase over the 1,137,958 chapter 7 filings for the same period in 2004. Chapter 7 filings also increased 33 percent from the 2005 third quarter from 429,299 to 570,355 in the 2005 fourth quarter.

The next-largest group of filings in the 12-month period ending December 31, 2005, was chapter 13 at 412,130, a 9 percent decrease from the 449,129 filings in the 12-month period ending December 31, 2004. CY2005 chapter 12 filings totaled 380, a 252 percent increase from the 108 filings in the 12-month period ending December 31, 2004. Reflecting the strong economy and low interest rates, chapter 11 filings fell from 10,132 in CY2004 to 6,800 in the 12-month period ending December 31, 2005, a 33 percent decrease.

BUSINESS FILINGS for the 3-month period ending December 31, 2005, totaled 12,798, a 64.54 percent increase from the 7,778 bankruptcy business cases filed in the same period in 2004. NONBUSINESS FILINGS for the 3-month period ending September 30, 2005, totaled 654,633, an 80 percent increase from the 363,890 total in the same quarter in 2004.

The chapter* breakdown of BUSINESS filings for the 3-month period ending December 31, 2005, is: 9,701 chapter 7s, 1,692 chapter 11s, 87 chapter 12s and 1,308 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the 3-month period ending December 31, 2005, is 560,654 chapter 7s, 263 chapter 11s and 93,714 chapter 13s.

Districts with the Highest Percentage INCREASE in Total Filings for the 12-month period ending December 31, 2005 (compared to the identical period in 2004):

  1. District of Virgin Islands: 68.42%
  2. Northern District of Ohio: 57.47%
  3. Southern District of West Virginia: 57.02%
  4. District of North Dakota: 54.68%
  5. District of Vermont: 54.42%

Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending December 31, 2005 (compared to the identical period in 2004):

  1. Southern District of Georgia: 9.79%
  2. Middle District of Georgia: 6.67%
  3. District of Puerto Rico: 0.82%
  4. District of South Carolina: 0.47% (Increase)
  5. Middle District of Tennessee: 4.19% (Increase)

More information will be available at  ABI’s Statistics Page,http://www.abiworld.org/statistics.

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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 11,000 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.

 

First Quarter Bankruptcy Filings Increase Nearly 18 Percent over 2009 More Consumers Filing Chapter 7

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

 

FIRST QUARTER BANKRUPTCY FILINGS INCREASE NEARLY 18 PERCENT OVER 2009; MORE CONSUMERS FILING CHAPTER 7

May 14, 2010, Alexandria, Va.— The total number of U.S. bankruptcy cases filed during the first three months of 2010 increased 17.5 percent over the same period in 2009, according to data released today by the Administrative Office of the U.S. Courts. As total filings reached 388,148 during the first calendar year quarter of 2010 (Jan. 1-March 31), the total surpassed the 330,394 new cases that were filed over the same period in 2009. The total filings in the 2010 first quarter also represent a 4.3 percent increase from the 372,203 bankruptcies filed during the fourth quarter of 2009 (Oct. 1 – Dec. 31).

“As Congress continues to consider financial regulatory reforms to address the causes of the economic downturn, consumers and business are still turning to bankruptcy to find relief from financial distress,” said Samuel J. Gerdano, ABI Executive Director.  “We expect filings to surge past 1.5 million cases by year-end.”

Consumer filings increased 18.2 percent to 373,541 for the three-month period ending March 31, 2010, from the 2009 first quarter total of 316,158. They also represent a 4.6 percent increase from the fourth quarter of 2009, which recorded a total of 357,183 nonbusiness filings. The percentage of consumers filing for chapter 13 protection fell slightly from 29.2 percent during the first quarter of 2009 (January 1-March 31) to 27.1 percent over the same period in 2010. The number of consumers filing for chapter 7 protection increased to 72.8 percent during the first three months of 2010, the largest percentage of consumer chapter 7 filers since the implementation of BAPCPA in 2005.

Business filings for the three-month period ending March 31, 2010 totaled 14,607, representing a 2 percent increase over the first quarter 2009 total of 14,319. The first quarter 2010 business filing total represented a 2.8 percent decrease, however, from the fourth quarter 2009 total of 15,020.

The 12-month filing total of 1,531,997 for the period ending March 31, 2010, is an increase of 27.4 percent from the same period in 2009, which totaled 1,202,395 filings. Nonbusiness filings for the 12-month period ending March 31, 2010, totaled 1,470,849, up 27.5 percent from the 1,153,318 total nonbusiness filings in the 12-month period ending March 31, 2009. Business filings for the 12-month period ending March 31, 2010, totaled 61,148, up 24.6 percent from the 49,077 business filings in the 12-month period ending March 31, 2009.

The 1,100,032 total chapter 7 filings for the 12-month period ending March 31, 2010, represent a 34.2 percent increase from the 819,304 filings from the same period in 2009. Total chapter 13 filings increased 12.2 percent to 415,966 in the 12-month period ending March 31, 2010 from 370,836 in the same period last year.  During this same 12-month period, total chapter 11 filings also increased, rising 29.5 percent to 15,251 in 2010 from 11,774 in 2009, and chapter 12 filings increased 64.8 percent to 605 in 2010 compared to 367 filings in 2009.

The chapter breakdown of BUSINESS filings for the 3-month period ending March 31, 2010, is: 10,074 chapter 7s, 3,293 chapter 11s, 163 chapter 12s and 1,043 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2010, is: 272,048 chapter 7s, 440 chapter 11s and 101,051 chapter 13s.

States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending March 31, 2010:

  1. Nevada
  2. Tennessee
  3. Georgia
  4. Indiana
  5. Alabama
  6. Michigan
  7. Ohio
  8. California
  9. Illinois
  10. Kentucky

Districts with the HIGHEST PERCENTAGE INCREASE in total filings for the 12-month period ending March 31, 2010 (compared to the identical period in 2009):

1. District of Arizona: 69.2%
2. District of the Virgin Islands: 58.8%
3. Central District of California: 57.8%
4. District of Wyoming: 53.3%
5. Northern District of California: 50.5%

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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.

September Consumer Bankruptcy Filings Up 28.6 Percent over Previous Year

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

 

SEPTEMBER CONSUMER BANKRUPTCY FILINGS UP 28.6 PERCENT OVER PREVIOUS YEAR

October 3, 2008, Alexandria, Va. U.S. consumer bankruptcy filings increased 28.6 percent nationwide in September from the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). While representing an increase from the previous year, the overall September consumer filing total of 88,663 represented an 8 percent decline fromAugust. Chapter 13 filings constituted 33.5 percent of all consumer cases in September, a slight increase from August. 

'The continued rise in personal bankruptcies reflects high consumer debt, made worse by energy costs and the weak housing market, trapping many households in homes they can neither afford or sell,” said ABI Executive Director Samuel J. Gerdano. “We expect consumer bankruptcies to exceed 1.1 million new cases by year end.”

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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 11,700 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.

 

 

Consumer Bankruptcy Filings Up Nearly 40 Percent in 2007

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

CONSUMER BANKRUPTCY FILINGS UP NEARLY 40 PERCENT IN 2007

January 3, 2008, Alexandria, Va. U.S. consumer bankruptcy filings increased nearly 40 percent nationwide in 2007 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 2007 calendar year (Jan. 1 – Dec. 31, 2007) reached 801,840 compared to the 573,203 filings recorded during the similar period in 2006.

“The roughly 40 percent spike in consumer bankruptcies during 2007 presages even higher filings this year, as the heavy consumer debt load is made worse by the home mortgage crisis,” predicted ABI Executive Director Samuel J. Gerdano.

However, NBKRC’s data also showed that the 66,389 consumer filings recorded in December represented a 7.5 percent decrease from the 71,799 filings in November. Chapter 13 filings constituted 38.32 percent of all consumer cases in December, a slight decrease from November.

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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.

 

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.

ABI Endowment-Funded Study Finds Unsecured Creditor Recoveries Have Decreased Post-BAPCPA

Alexandria, Va. —Despite the financial services industry’s goal that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) would improve unsecured creditor recoveries in consumer bankruptcy cases, an American Bankruptcy Institute Endowment-funded study finds that recoveries in fact declined. Prof. Lois Lupica of the University of Maine School of Law, who also authored the ABI Endowment-funded Consumer Bankruptcy Fee Study in 2011, was the reporter and principal investigator for "The Consumer Bankruptcy Creditor Distribution Study" to examine creditor recoveries before and after the enactment of BAPCPA. Prof. Lupica also set out to discover whether consumers are able to repay a larger percentage of their unsecured debts under BAPCPA. “Our analysis reveals BAPCPA does not appear to have achieved the primary objective of its proponents, as unsecured distributions as a percentage of unsecured claims declined nationally by a statistically significant 3.2 percentage points in the post-BAPCPA time period,” Prof. Lupica writes in the findings. “Moreover, unsecured distributions as a percentage of total distributions declined by 2.5 percentage points, a result that was also statistically significant.” To access a copy of the study, please click here. Analyzing data extracted from chapter 7 and 13 consumer bankruptcy cases filed nationally between 2003 and 2009, Prof. Lupica was able to compare creditor distributions for consumer cases filed under chapter 13 during pre-BAPCPA and post-BAPCPA time periods. In light of the significant increase in access costs and the fact that in many cases some or all of the chapter 13 and all of the chapter 7 attorney’s fee is paid post-petition from estate assets, Prof. Lupica found that creditors received lower distributions as a percentage of their claims under both chapter 13 and in chapter 7 asset-cases post-BAPCPA. For more information about ABI’s “Consumer Bankruptcy Creditor Distribution Study” or to arrange an interview with Prof. Lupica, please contact John Hartgen at 703-894-5935 or jhartgen@abiworld.org. ### 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 13,000 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.abi.org. For additional conference information, visit the Events page.

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