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November Consumer Bankruptcy Filings Increase 39 Percent over Last Year

Contact: John Hartgen
             703-442-0133
             jhartgen@abiworld.org

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.”  

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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 17 Percent in August

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


CONSUMER BANKRUPTCY FILINGS INCREASE 17 PERCENT IN AUGUST

September 6, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased 17.3 percent nationwide in August from the previous month, according to the American Bankruptcy Institute (ABI). Relying on data provided by the National Bankruptcy Research Center (NBKRC), overall consumer filings totaled 74,607 in August, up from the 63,600 filings in July. The figure was also up 31.2 percent from August 2006. Chapter 13 filings constituted 39.6 percent of all consumer cases in August, down slightly from last month.  

'The uptick in August bankruptcies continues the trend we've seen all year,' observed ABI Executive Director Samuel J. Gerdano. 'Families facing heavy household debts are increasingly turning to bankruptcy as a short-term fix.'

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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.

Consumer Bankruptcy Filings Top 125000 in April

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

CONSUMER BANKRUPTCY FILINGS TOP 125,000 IN APRIL

May 4, 2009, Alexandria, Va.— U.S. consumer bankruptcy filings increased 36 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 125,618 represented a 3.5 percent increase from the March total of 121,413. Chapter 13 filings constituted 26 percent of all consumer cases in April, slightly above the March rate.
 
“The filings reveal that American families are continuing to seek relief from the financial pressures of today’s economy,” said ABI Executive Director
Samuel J. Gerdano. “The April total is in line with our estimate of more than 1.4 million consumer cases to be filed in 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 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.

February Consumer Bankruptcy Filings Increase 29 Percent over Last Year

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

 

FEBRUARY CONSUMER BANKRUPTCY FILINGS INCREASE 29 PERCENT OVER LAST YEAR

March 3, 2009, Alexandria, Va. U.S. consumer bankruptcy filings increased 29.2 percent nationwide in February 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 February consumer filing total of 98,344 represented nearly an 11 percent increase from the January total of 88,773. Chapter 13 filings constituted 30.2 percent of all consumer cases in February, a 2.6 percent decrease from January. 

“We expect at least 1.4 million bankruptcies this year, even more if Congress changes the law to permit residential home mortgages to be modified in chapter 13,” said ABI Executive Director Samuel J. Gerdano

###

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.

 

Total Bankruptcy Filing Growth Rate Slows to 8 Percent in 2010 Business Filings Fall 7.5 Percent

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

 

TOTAL BANKRUPTCY FILING GROWTH RATE SLOWS TO 8 PERCENT IN 2010, BUSINESS FILINGS FALL 7.5 PERCENT


February 15, 2011 Alexandria, Va. — Total bankruptcy filings in the United States increased 8 percent in 2010 over calendar year 2009, according to data released today from the Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings totaled 1,593,081 for the 12-month period ending Dec. 31, 2010, over the previous year’s total of 1,473,675. Total filings have steadily increased since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Total bankruptcies reached 2,078,415 in advance of the 2005 changes to the Bankruptcy Code.

“After three consecutive years of double-digit increases in total filings, the slowing of the growth rate of bankruptcies reflects a retrenchment in consumer spending associated with a down U.S. economy,” said ABI Executive Director Samuel J. Gerdano.

The 1,536,799 consumer filings during the 2010 calendar year represented a 9 percent increase over the 1,412,838 filings recorded during the same period in 2009. The consumer chapter 7 total of 1,100,116 filings during the 12-month period ending Dec. 31, 2010, represented a 9 percent increase over the 1,008,870 consumer chapter 7 filings during all of 2009. The consumer chapter 7 filings comprised 72 percent of the total consumer filings for the 2010 calendar year, up slightly from the previous year. The percentage of consumers filing under chapter 7 has increased each year since BAPCPA was implemented at the end of 2005.

The 434,739 consumers who filed for chapter 13 during the 12-month period ending Dec. 31, 2010, comprised 28 percent of the overall consumer filing total. The consumer chapter 13 total for 2010 represents an 8 percent increase over the 402,462 consumer chapter 13 filings during 2009.

While total and consumer bankruptcies continued to increase in 2010, business filings decreased by 7.5 percent. Business bankruptcies decreased to 56,282 filings during calendar year 2010 from the 60,837 filings made during the 12-month period ending Dec. 31, 2009. Chapter 11 business filings decreased the most in calendar year 2010, falling 14 percent to 11,774 from the 13,683 recorded in 2009.

The only business bankruptcy chapter to experience an increase in 2010 was chapter 12, which is designed to give special debt relief to family farmers and fishermen. Chapter 12 business filings increased 33 percent to 723 bankruptcies during the 12-month period ending Dec. 31, 2010 from the 544 filings recorded in 2009. The 2010 chapter 12 business bankruptcies represent the highest total since the 834 filings registered during the 12-month period ending Dec. 31, 1999.

The 370,080 total bankruptcies recorded during the fourth calendar quarter of 2010 (Oct.1-Dec. 31, 2010) represent a 1 percent decrease from the 372,203 filings during the same period in 2009. The fourth quarter 2010 filing total also represents a 10 percent decrease over the third quarter (July 1 – Sept. 30, 2010) total of 412,380.

The 357,050 consumer filings in the fourth quarter of 2010 represent a 0.4 percent decrease in comparison to the 357,183 consumer filings for the same quarter of 2009. Mirroring the overall filing total, the consumer filings in the fourth calendar quarter represented a 10 percent decrease from the third quarter 2010 total of 398,423 consumer filings.

Business filings, which totaled 13,030 for the fourth calendar quarter of 2010, represented a 13 percent decrease from the 15,020 filed in the same three-month period in 2009 (Oct. 1-Dec. 31). Business filings in the fourth quarter of 2010 decreased 7 percent from the 13,957 business filings reported during the third quarter of 2010 (July 1- Sept. 30).

The chapter* breakdown of BUSINESS filings for the 3-month period ending Dec. 31, 2010, is 9,142 chapter 7s, 2,682 chapter 11s, 164 chapter 12s and 989 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the 3-month period ending Dec. 31, 2010, is 248,526 chapter 7s, 466 chapter 11s and 108,057 chapter 13s.

Districts with the HIGHEST PERCENTAGE INCREASE in Total Filings for the 12-month period ending Dec. 31, 2010 (compared to the identical period in 2009):

1.     Southern District of Florida: 36.2%
2.     Central District of California: 31.4%
3.     District of Hawaii: 27.4%
4.     District of Utah: 24.6%
5.     District of Arizona: 23.7%

Districts with the HIGHEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending Dec. 31, 2010 (compared to the identical period in 2009):

1.     District of the Guam: -21.7%
2.     District of the Virgin Islands: -17.2%
3.     Eastern District of Tennessee: -10.5%
4.     Northern District of West Virginia: -10.3%
5.     Western District of New York: -9.9%
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 nearly 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.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 Bankruptcy Filings Increase 31 Percent Business Filings Surge 54 Percent in 2008

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

 

TOTAL BANKRUPTCY FILINGS INCREASE 31 PERCENT, BUSINESS FILINGS SURGE 54 PERCENT IN 2008

March 5, 2009 Alexandria, Va. — Total bankruptcy filings in the United States increased 31 percent in 2008 over calendar year 2007, according to data released today from the Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings totaled 1,117,771 for the 12-month period ending Dec. 31, 2008, a significant increase over the previous year’s total of 850,912. The 2008 filing total marks the first year since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that bankruptcies have surpassed 1 million.  

'Today's numbers confirm what we have reported previously, that bankruptcies are on the rise, and will continue to spike upward in 2009,' said ABI Executive Director Samuel J. Gerdano. 'We expect filings to reach 1.4 million or even more this year, especially if Congress changes the law to permit homeowners to modify home mortgages via chapter 13.' 

Business bankruptcies recorded the sharpest percentage increase as the 43,546 business filings during calendar year 2008 represented a 54 percent increase in filings from the 28,322 filings made during the 12-month period ending Dec. 31, 2007. The 12-month business filing total for 2008 was the highest since the 44,367 filings recorded for the 1998 calendar year. 

The 1,074,225 consumer filings during the 2008 calendar year represented a 31 percent increase over the 822,590 recorded during the same period in 2007. The 714,389 consumer chapter 7 filings during the 12-month period ending Dec. 31, 2008, comprised 67 percent of the total consumer filings for the 2008 calendar year, up from 61 percent the previous year. The consumer chapter 7 total for 2008 represented a 43 percent increase over the 500,613 consumer chapter 7 filings during 2007.

The 358,947 consumers who filed for chapter 13 during the 12-month period ending Dec. 31, 2008, comprised 33 percent of the overall consumer filing total. The consumer chapter 13 total for 2008 represents a 12 percent increase over the 321,359 consumer chapter 13 filings during 2007.

The 301,317 total bankruptcies recorded during the fourth calendar quarter of 2008 (Oct.1-Dec. 31, 2008) represent a 31 percent increase from the 226,413 filings during the same period in 2007. The 2008 fourth calendar quarter filing total was the first time since the implementation of BAPCPA that quarterly filings have eclipsed 300,000. The fourth quarter 2008 filing total also represented a 3 percent increase over the third quarter (July 1 – Sept. 30, 2008) total of 292,291.

The 288,416 consumer filings in the fourth quarter of 2008 represent a 32 percent increase in comparison to the 218,428 consumer filings for the same quarter of 2007. The consumer filing total for the fourth calendar quarter also represented a nearly 3 percent increase from the third quarter 2008 total of 280,787 consumer filings.

Business filings, which totaled 12,901 for the fourth calendar quarter of 2008, represented a 62 percent increase from the 7,985 filed in the same 3-month period in 2007 (Oct. 1-Dec. 31). Business filings also rose over the previous quarter as the fourth calendar quarter represented a 12 percent increase over the 11,504 business filings reported during the third quarter of 2008 (July 1- Sept. 30).

The chapter* breakdown of BUSINESS filings for the 3-month period ending Dec. 31, 2008, is 8,872 chapter 7s, 2,941 chapter 11s, 90 chapter 12s and 970 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the 3-month period ending Dec. 31, 2008, is 193,246 chapter 7s, 234 chapter 11s and 94,935 chapter 13s.

States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending Dec. 31, 2008:

 

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

 

Districts with the HIGHEST PERCENTAGE INCREASE in Total Filings for the 12-month period ending Dec. 31, 2008 (compared to the identical period in 2007):

  1. Central District of California: 93.5%
  2. District of Arizona: 78.9%
  3. Eastern District of California: 78.1%
  4. Southern District of California: 76.6%
  5. District of Delaware: 73.9%

Districts with the HIGHEST PERCENTAGE DECREASEin Total Filings for the 12-month period ending Dec. 31, 2008 (compared to the identical period in 2007):

  1. District of the Northern Mariana Islands: -29.4%
  2. District of the Virgin Islands: -21.7%
  3. Southern District of the Texas: -6.1%
  4. Middle District of Louisiana: -3.1%
  5. Northern District of New York: -2.2%

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 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.

October Consumer Bankruptcy Filings Increase Slightly from Previous Month

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

OCTOBER CONSUMER BANKRUPTCY FILINGS INCREASE SLIGHTLY FROM PREVIOUS MONTH


November 2, 2010, Alexandria, Va.— U.S. consumer bankruptcy filings totaled 132,173 nationwide during October, a 1.4 percent increase over the 130,329 total consumer filings recorded in September, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). While the October consumer filings represented an increase from the previous month, they represented a 2.75 percent decrease from the October 2009 total of 135,913. Chapter 13 filings constituted 29.7 percent of all consumer cases in October, a slight decrease from September.

“As the issues of unemployment and economic stress weigh heavily on today’s elections, consumers continue to seek the financial shelter of bankruptcy,” said ABI Executive DirectorSamuel J. Gerdano. “We anticipate that there will be nearly 1.6 million consumer bankruptcy filings by year end.”

###


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.

October Consumer Bankruptcy Filings Top 100000 for First Time Since Law Change in 2005

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

OCTOBER CONSUMER BANKRUPTCY FILINGS TOP 100,000 FOR FIRST TIME SINCE LAW CHANGE IN 2005

November 4, 2008, Alexandria, Va.- U.S. consumer bankruptcy filings increased 40 percent nationwide in October 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 October consumer filing total of 106,266 also represented a 20 percent increase from September. Chapter 13 filings constituted 32.6 percent of all consumer cases in October, a slight decrease from September. 

The October consumer filing total also represents the first time that bankruptcies have topped 100,000 since the Bankruptcy Abuse Prevention and Consumer Protection Act went into effect in October 2005. The 880,076 consumer filings through the first 10 months of 2008 (Jan. 1 - Oct. 31) have already eclipsed the filing total of 822,590 for all of last year.

“October's sharp spike in new consumer bankruptcies confirms the severe financial stress on household budgets caused by high debts, flat incomes, and declining home values,” said ABI Executive Director Samuel J. Gerdano.  “We expect the 2008 numbers to be the highest since the new bankruptcy law went into effect in 2005.”

###

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.

 

Bankruptcy Filings in First Half of 2007 Up 48 Percent from a Year Ago

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

 

BANKRUPTCY FILINGS IN FIRST HALF OF 2007 UP 48 PERCENT FROM A YEAR AGO

August 16, 2007, Alexandria, Va. The total number of U.S. bankruptcies filed during the first six months of 2007 increased 48.23 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. Total filings reached 404,090 during the first half of the calendar year of 2007 (January 1-June 30), compared to 272,604 cases filed over the same period in 2006.

“The new upward trend in bankruptcies reflects the economic reality of households under increasing financial stress,” said ABI Executive Director Samuel J. Gerdano. “We expect bankruptcy filings to continue to rise for the balance of 2007.”

Filings by individuals or households with consumer debt increased 48.34 percent to 391,105 for the six-month period ending June 30, 2007, from the 2006 first-half total of 263,660. The overall percentage of consumers filing for chapter 13 protection fell slightly from 41.15 percent during the first half of 2006 (January 1-June 30) to 38.35 percent over the same period in 2007. Conversely, the first-half 2007 percentage of chapter 7 consumer filers increased to 61.58 percent from the 58.76 percent recorded in the first half of 2006.

Business filings for the six-month period ending June 30, 2007, totaled 12,985, representing a 45.18 percent increase over the first-half 2006 total of 8,944. Chapter 7 liquidations increased to 8,404 in the first half of 2007, a 65.21 percent increase over the 5,087 business chapter 7 filings during the same period in 2006. Chapter 11 reorganizations also rose from 2,370 in the first half of 2006 to 2,713 in the same period of 2007, a 14.47 percent increase.

The 751,056 total filings for the 12-month period ending June 30 were down 49.41 percent from the same period in 2006, which totaled 1,484,570 filings, a figure that includes a surge in cases filed before the implementation date of a major change in the law. The bankruptcy filing rate per thousand U.S. residents totaled 2.48 for all chapters during the 12-month period ending June 30, 2007, as 1.49 Americans per thousand filed for chapter 7 while 0.97 per thousand filed for chapter 13 bankruptcy. Tennessee was the state with the highest per capita filing rate in the country with 6.03 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 13 filings at 3.78. The state with the highest per capita filing rate for chapter 7 bankruptcy was Indiana at 2.98 per thousand for the 12-month period ended June 30, 2007.

Nonbusiness filings for the 12-month period ending June 30, 2007, totaled 727,167, down 50 percent from the 1,453,008 total nonbusiness filings experienced over the same period in 2006. Business filings for the 12-month period ending June 30, 2007, totaled 23,889, down 24.31 percent from the 31,562 bankruptcy petitions filed in the 12-month period ending June 30, 2006.

The 450,332 total chapter 7 filings for the 12-month period ending June 30, 2007, represent a 61.34 percent decrease from the 1,164,815 filings from the same period in 2006. Chapter 13 filings fell 5.87 percent to 294,693 in the 12-month period ending June 30, 2007, from 313,085 in the same period last year. Chapter 11 filings also declined, falling 10.25 percent to 5,586 in 2007 from 6,224 in 2006. However, chapter 12 filings rose 7.22 percent from 360 in 2006 to 386 in 2007.

BUSINESS FILINGS for the 3-month period ending June 30, 2007, totaled 6,705, up 38.02 percent from the 4,858 bankruptcy business cases filed in the same period in 2006. NON-BUSINESS FILINGS for the 3-month period ending June 30, 2007, increased 34.95 percent from 150,975 in 2006 to 203,744 in 2007.

The chapter* breakdown of BUSINESS filings for the 3-month period ending June 30, 2007, is: 4,333 chapter 7s, 1,430 chapter 11s, 112 chapter 12s and 821 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending June 30, 2007, is: 127,180 chapter 7s, 144 chapter 11s and 76,420 chapter 13s.

###

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.

Consumer Bankruptcy Filings Down 10 Percent Through Nine Months of 2011

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

CONSUMER BANKRUPTCY FILINGS DOWN 10 PERCENT THROUGH NINE MONTHS OF 2011

October 4, 2011, Alexandria, Va. — U.S. consumer bankruptcy filings totaled 1,044,722 nationwide during the first nine months of 2011 (Jan. 1-Sept. 30), a 10 percent decrease from the 1,165,172 total consumer filings during the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). September consumer bankruptcies decreased 17 percent nationwide from September 2010 as the data showed that the overall consumer filing total for September reached 108,517 down from the 130,329 consumer filings recorded in September 2010.
 
“The trend of declining filings has been consistent with consumers continuing to reign in their spending, household debt, and an overall pull back in consumer credit,” said ABI Executive Director Samuel J. Gerdano. “Total consumer filings for 2011 will be less than 2010.”
 
The September 2011 filings also represented a 4 percent decrease from the August 2011 consumer bankruptcy total of 113,432 filings, a slight change that could be the result of one less day in the month. The percentage of chapter 13 filings for September was 30 percent, a one percent increase from August.

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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 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.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.

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