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First Quarter Bankruptcy Filings Fall to Lowest Levels Since 1985

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

FIRST QUARTER BANKRUPTCY FILINGS FALL TO LOWEST LEVELS SINCE 1985

May 26, 2006, Alexandria, Va. The total number of U.S. bankruptcies filed during the first three months of 2006 were the lowest on record in more than 20 years as filings fell to 116,771, according to data released today by the Administrative Office of the U.S. Courts. The total filings for the first calendar year quarter of 2006 (January 1-March 31, 2006) have not been experienced since the 1985 fourth calendar year quarter (October 1-December 31, 1985), when bankruptcy filings totaled 114,021. The 2006 first quarter calendar year filings also represent a 82.5 percent drop in filings from the previous quarter (October 1-December 31, 2005) when 667,431 new cases were filed. It is also represents a 70.89 percent drop compared to the 401,149 total filings for the same three-month period ending March 31, 2005.

A new bankruptcy law went into effect on October 17, 2005. The new law requires that consumers first go through credit counseling before being eligible for bankruptcy. The new law also reduces the scope of bankruptcy relief.

“Congress hoped the new law would reduce the number of new consumer bankruptcies and the latest figures reflect that intention, though there are still many families under financial stress,” said Samuel J. Gerdano, ABI Executive Director. “We haven’t seen numbers this low since the mid-1980’s, when a gallon of gasoline was $1.20.”

Consumer filings represented the largest drop-off as they decreased 82.79 percent to 112, 685 for the three-month period ending March 31, 2006 from 654,633 the previous three-month period ending December 31, 2005. They also represent a 71.33 percent decrease from the same period in 2005, which had a total of 393,086 nonbusiness filings.

Business filings for the three-month period ending March 31, 2006 also experienced significant decreases as the total of 4,086 filings were down 68.02 percent from the 2005 fourth quarter total of 12,798 and 49.32 percent from the 8,063 business cases filed in the same quarterly period of 2005.

However, total filings increased for each month of the three-month period ending March 31, 2006, as nearly half of the total filings (44.26 percent) occurred in the month of March with 51,683 filings. January 2006 totaled 28,368 filings, while 36,720 total filings were recorded for February 2006. The steady increase was in stark contrast to the previous quarter’s steep monthly drop due to the October 17, 2005, implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Filings fell from a high of 630,468 in October 2005 to 14,480 for November 2005 and 22,927 for December 2005.

The total filings for the 12-month period ending March 31, 2006 were sustained by the surge of debtors filing for bankruptcy before the October 2005 implementation of BAPCPA. Total filings rose 12.81 percent to 1,794,795 compared to 1,590,975 bankruptcy cases filed in the 12-month period ending March 2005. Prior to the March 2006 12-month reporting period, bankruptcy filings rose 30 percent in the 12-month period ending December 31, 2005, which was also attributable to the rush prior to BAPCPA’s implementation.

Nonbusiness filings for the 12-month period ending March 31, 2006, totaled 1,759,503, up 12.86 percent from the 1,559,023 total nonbusiness filings in the 12-month period ending March 31, 2005. Business filings for the 12-month period ending March 31, 2006, totaled 35,292, up 10.45 percent from the 31,952 bankruptcy petitions filed in the 12-month period ending March 31, 2005.

Chapter 7 filings rose to 1,432,074 for the 12-month period ending March 31, 2006, representing a 25.43 percent increase from the 1,141,715 filings from the same period in 2005. Chapter 13 filings fell 19.48 percent, to 355,756 in the 12-month period ending March 31, 2006 from 441,838 in the same period last year. Chapter 11 filings also declined, falling 8.69 percent to 6,497 in 2006 from 7,115 in 2005. Chapter 12 filings rose 93.65 percent from 189 in 2005 to 366 in 2006.

BUSINESS FILINGS for the 3-month period ending March 31, 2006, totaled 4,086, down 49.32 percent from the 8,063 bankruptcy business cases filed in the same period in 2005. NON-BUSINESS FILINGS for the 3-month period ending March 31, 2006, decreased 71.33 percent from 393,086 in 2005 to 112,685 in 2006.

The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2006, is: 2,147 chapter 7s, 1,291 chapter 11s, 84 chapter 12s and 540 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2006, is: 63,250 chapter 7s, 121 chapter 11s and 49,314 chapter 13s.

Districts with the Highest Percentage INCREASE in Total Filings for the 12-month period ending March 31, 2006 (compared to the identical period in 2005):

  1. District of Vermont: 39.76%
  2. Northern District of Indiana: 35.86%
  3. District of Alaska: 35.10%       
  4. Northern District of Ohio: 33.76
  5. Western District of Oklahoma: 33.37%

Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending March 31, 2006 (compared to the identical period in 2005):

  1. Southern District of Georgia: 19.32%
  2. Middle District of Georgia: 17.14%
  3. Southern District of Alabama: 15.02% 
  4. District of South Carolina: 14.93%       
  5. District of Utah: 12.05%

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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 Bankruptcy Filings Up 11 Percent Through First Nine Months of 2010 While Business Filings Decrease

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

 

TOTAL BANKRUPTCY FILINGS UP 11 PERCENT THROUGH FIRST NINE MONTHS OF 2010 WHILE BUSINESS FILINGS DECREASE


 
November 8, 2010 Alexandria, Va.— The 1,222,589 total U.S. bankruptcies filed for the first nine months of 2010 (Jan. 1 – Sept. 30) represented an 11 percent increase over the 1,100,035 cases filed over the same period in 2009, according to data released today by the Administrative Office of the U.S. Courts. Consumer filings totaled 1,179,573 for the first nine months of 2010 representing nearly a 12 percent increase over 1,054,525 filed during the same period in 2009. Bankruptcies have continued to increase since the 2005 amendments to the Bankruptcy Code.
 
“As the economy looks to climb out of the recent recession, businesses and consumers continue to file for bankruptcy to regain their financial footing,” said ABI Executive Director Samuel J. Gerdano. “With unemployment hovering near 10 percent and access to credit remaining tight, total filings in 2010 will likely exceed 1.6 million.”
 
The 43,016 business bankruptcies recorded during the first three quarters of 2010 (Jan. 1 – Sept. 30) represented nearly a 6 percent drop from the 45,510 business filings during the same period in 2009. Business filings during the three-month period ending Sept. 30, 2010, totaled 13,957 filings, down 8 percent over the 15,177 business filings in 2009. Chapter 11 business filings decreased nearly 5 percent to 2,916 during the third quarter of 2010, compared to the 3,060 filings during the similar period in 2009. Chapter 7 business filings totaled 9,807 during the three-month period ending Sept. 30, 2010, representing a 9 percent decrease over the 10,798 filings during the same period in 2009.

The 1,596,355 total filings for the 12-month period ending Sept. 30, 2010, were up nearly 14 percent from the same period in 2009, which totaled 1,402,816. Nonbusiness filings for the 12-month period ending Sept. 30, 2010, totaled 1,538,033, an increase of 14 percent from the 1,344,095 total nonbusiness filings calculated over the same period in 2009. However, business filings decreased slightly for the 12-month period ending Sept. 30, 2010, as the 58,322 business filings were down nearly 1 percent from the 58,721 business petitions filed in the 12-month period ending Sept. 30, 2009.

The 1,146,511 total chapter 7 filings for the 12-month period ending Sept. 30, 2010, represent a 16 percent increase from the 989,227 filings from the same period in 2009. Total chapter 13 filings increased 9 percent to 434,839 in the 12-month period ending Sept. 30, 2010, from 398,210 in the same period last year. In addition, total chapter 12 filings nearly doubled, increasing 45 percent from 487 in 2009 to 707 in 2010. Total chapter 11 filings fell, however, decreasing nearly 4 percent to 14,191 in 2010 from 14,745 in 2009.
 
The 412,380 total U.S. bankruptcies filed during the third quarter of 2010 (July 1 – Sept. 30) represented a 6 percent increase over the 388,485 cases filed over the same period in 2009. Consumer filings totaled 398,423 during the third quarter of 2010 (July 1-Sept. 30), representing a 7 percent increase over the 373,308 filed during the same period of 2009. Consumer chapter 7 filings during the 2010 third quarter totaled 280,006, an increase of 5 percent over the 2009 third quarter total of 265,721. Chapter 13 consumer filings also increased during the three-month period ending Sept. 30, 2010, with the 117,893 filings, representing an 10 percent increase over the 107,142 filings during the same period in 2009.
 
BUSINESS FILINGS for the 3-month period ending Sept. 30, 2010, totaled 13,957, down nearly 8 percent from the 15,177 bankruptcy business cases filed in the same period in 2009.

NON-BUSINESS FILINGS for the 3-month period ending Sept. 30, 2010, increased 7 percent from 373,308 in 2009 to 398,423 in 2010.
 
The chapter* breakdown of BUSINESS filings for the 3-month period ending Sept. 30, 2010, is: 9,807 chapter 7s, 2,916 chapter 11s, 202 chapter 12s and 1,011 chapter 13s.
 
The chapter breakdown of NON-BUSINESS filings for the 3-month period ending Sept. 30, 2010, is: 280,006 chapter 7s, 524 chapter 11s and 117,893 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 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.

 

November Consumer Bankruptcy Filings Drop 18 Percent from Previous Month

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

NOVEMBER CONSUMER BANKRUPTCY FILINGS DROP 18 PERCENT FROM PREVIOUS MONTH

 

December 2, 2009, Alexandria, Va.—  The 112,152 consumer filings in November represented a decrease of 18 percent from the 135,913 filings registered in October, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). Despite the drop from the previous month, the November filings represented a 12 percent increase over the 99,925 consumer filings in November 2008. Chapter 13 filings constituted 29 percent of all consumer cases in November, unchanged from the October rate.

'While bankruptcy filings cooled in November, consumers are still feeling the effects of rising unemployment rates and housing debt,' said ABI Executive Director Samuel J. Gerdano. 'Bankruptcies are set to top 1.4 million filings for 2009 as consumers and businesses continue to seek shelter from economic distress.'

###

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 12,400 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.

 

September Consumer Bankruptcy Filings Increase 23 Percent over Previous Year

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

SEPTEMBER CONSUMER BANKRUPTCY FILINGS INCREASE 23 PERCENT OVER PREVIOUS YEAR

October 2, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased nearly 23 percent nationwide in September from the previous year, according to the American Bankruptcy Institute (ABI). Yet according to data from the National Bankruptcy Research Center (NBKRC), the overall September consumer filing total of 68,926 represented a 7.6 percent decrease from the 74,607 filings in August. Chapter 13 filings constituted 40 percent of all consumer cases in September, a slight increase over the previous six months. 

“Bankruptcy filings are elevated from a year ago and likely to uptick further through the end of the year,” said ABI Executive Director Samuel J. Gerdano.  “Continued pressure on housing markets, combined with high consumer debt burdens, will lead more households to consider bankruptcy as an option to their financial problems.”

###

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.

 

February Consumer Bankruptcy Filings Increase 11 Percent from Previous Month

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

 

FEBRUARY CONSUMER BANKRUPTCY FILINGS INCREASE 11 PERCENT FROM PREVIOUS MONTH


 
March 1, 2011, Alexandria, Va.— February consumer bankruptcies increased 11 percent nationwide from January 2011, 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 February reached 102,686, up from the 92,669 consumer filings recorded in January 2011.
 
“Though consumers are striving to reduce their debt burden, high unemployment and a still-poor housing sector continue to fuel new bankruptcies,” said ABI Executive Director Samuel J. Gerdano. “We expect these factors to lead to over 1.5 million consumer filings this year.'
 
Though an increase from the January 2011 filings, the February 2011 consumer bankruptcy total represents an 8 percent decrease from the 111,693 filings recorded in February 2010. Chapter 13 filings constituted 30 percent of all consumer cases in February, a slight decrease from January.


###


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 12,800 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 Fall 18 Percent from Last Year

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

JULY CONSUMER BANKRUPTCY FILINGS FALL 18 PERCENT FROM LAST YEAR

August 2, 2011, Alexandria, Va. - July consumer bankruptcies decreased 18 percent nationwide from July 2010, 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 July reached 113,470, down from the 137,698 consumer filings recorded in July 2010. It was the seventh straight month of fewer bankruptcies in 2011 than last year.

'The continued decline in consumer bankruptcies in tandem with a sluggish economy is a reflection of the deleveraging of household debts and tightening of consumer credit over the past year,' said ABI Executive Director Samuel J. Gerdano. 'Should these trends persist, we expect to see fewer consumer bankruptcies in 2011 than were filed in 2010.'

The July 2011 filings also represented a 5 percent decrease from the June 2011 consumer bankruptcy total of 119,768 filings. The percentage of chapter 13 filings for July was 29 percent, a one percent increase from June.

###

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. 

 

Consumer Bankruptcy Filings Surge Past One Million in First Nine Months of 2009

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

 

CONSUMER BANKRUPTCY FILINGS SURGE PAST ONE MILLION DURING FIRST NINE MONTHS OF 2009

October 2, 2009, Alexandria, Va.— Consumer bankruptcies totaled 1,046,449 filings through the first nine months of 2009 (Jan. 1-Sept. 30), the first time since the 2005 bankruptcy overhaul that filings have surged past the 1 million mark during the first three calendar quarters of a year, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The filings for the first three-quarters of 2009 were the highest total since the 1,350,360 consumer filings through the first nine months of 2005.

'Bankruptcy filings continue to climb as consumers look to shelter themselves from the effects of rising unemployment rates and housing debt,' said ABI Executive Director Samuel J. Gerdano. 'The consumer filing total through the first nine months is consistent with our expectation that consumer bankruptcies will top 1.4 million in 2009.'

The September 2009 consumer filing total reached 124,790, a 41 percent increase from the 88,663 consumer filings in September 2008. The September 2009 filings also represented a 4 percent increase over the 119,874 filings in August 2009 and it is the fourth highest single month since the 2005 law change. Chapter 13 filings constituted 28 percent of all consumer cases in September, unchanged from the August rate.

###

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 12,300 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.

 

Bankruptcy Filings During First Three Quarters of 2006 Drop Off Nearly One Million from Previous Year

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

BANKRUPTCY FILINGS DURING FIRST THREE QUARTERS OF 2006 DROP OFF NEARLY ONE MILLION FROM PREVIOUS YEAR

December 5, 2006, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first three quarters of 2006 (Jan. 1 – Sept. 30, 2006) fell to 443,750 from 1,410,484 for the same period in 2005, according to data released today by the Administrative Office of the U.S. Courts. The combined total of the first three quarters of 2006 (Jan. 1- Sept. 30) represent the lowest number of calendar filings for the first nine months of a year since the first three quarters of 1987, when bankruptcy filings totaled 432,821 during a similar calendar period. The filings for the first three calendar quarters of 2006 also represent a 68.54 percent drop in filings from the previous year’s three quarter filings (Jan. 1-Sept. 30, 2005), when 1,410,484 bankruptcies were filed.

“On the eve of a Senate oversight hearing on the new bankruptcy law, today’s numbers confirm that we are seeing filing levels not present since the 1980’s,” said Samuel J. Gerdano, ABI Executive Director. “Congress clearly wanted to reduce filings, but only time will tell if the 2006 trend is sustainable,” he concluded.

The 2006 third quarter (July 1-Sept. 30, 2006) filing total of 171,146 also represents a 68.42 percent drop compared with the 542,002 total filings for the same three-month period ending Sept. 30, 2005. The 1,112,542 total filings during the 12-month period ending Sept. 30, 2006, represent the lowest number of filings in a 12-month period since the 12-month period ending Sept. 30, 1996, when there were 1,111,964 filings. Total filings decreased from the 1,782,643 filings reported for the 12-month period ending June 30, 2005.

Total consumer filings for the nine-month period from Jan. 1 – Sept. 30, 2006, were 429,522, representing a 68.97 percent decrease from the same period in 2005, in which consumer filings totaled 1,384,209. The 14,228 business filings from Jan. 1 – Sept. 30, 2006, represented a 45.85 percent decrease from the same period the previous year, in which 26,275 business filings were recorded.

Due in large part to the new requirements of the Bankruptcy Abuse Protection and Consumer Protection Act of 2005 (BAPCPA), the type of consumer bankruptcies filed in the first nine months of 2006 shifted considerably from the first nine months of 2005. Chapter 13 filings represented 41.39 percent of all consumer filings in the nine-month period ending Sept. 30, up from 22.79 percent during the same period of 2005. Conversely, the percentage of consumer chapter 7 filings fell to 58.52 percent of total consumer filings in the nine-month period ending Sept. 30, 2006, from 77.16   percent during the first three calendar quarters of 2005.

Nonbusiness filings for the 12-month period ending Sept. 30, 2006, fell 37.9 percent to 1,085,209 from the 1,748,421 total nonbusiness filings in the 12-month period ending Sept. 30, 2005. The 27,333 total business filings for the 12-month period ending Sept. 30, 2006, represented a 20.13 percent decrease from the 34,222 bankruptcy petitions filed in the 12-month period ending Sept. 30, 2005.

Total chapter 7 filings fell 38.11 percent to 833,147 in the 12-month period ending Sept. 30, 2006, from 1,346,201 in the same period last year. Chapter 13 filings fell 36.43 percent to 272,937 in the 12-month period ending Sept. 30, 2006, from 429,316 in the same period last year. Chapter 11 filings also declined, falling 9.55 percent to 6,003 in the 12-month period ending Sept. 30, 2006, from 6,637 in 2005. Conversely, chapter 12 filings rose slightly from 364 in the 12-month period ending Oct. 31, 2005, to 376 in 2006.

BUSINESS FILINGS for the three-month period ending Sept. 30, 2006, totaled 5,284, down 44.24 percent from the 9,476 bankruptcy business cases filed in the same quarter in 2005. NONBUSINESS FILINGS for the three-month period ending Sept. 30, 2006, decreased 68.85 percent from 532,526 in the same period in 2005 to 165,862.

The chapter* breakdown of BUSINESS filings for the three-month period ending Sept. 30, 2006, is: 3,249 chapter 7s, 1,192 chapter 11s, 97 chapter 12s and 716 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the three-month period ending Sept. 30, 2006, is: 96,442 chapter 7s, 140 chapter 11s and 69,280 chapter 13s.

NOTE: ALL CIRCUIT DISTRICTS EXPERIENCED FILING DECREASES FOR THE 12 MONTH PERIOD ENDING SEPT. 30, 2006 WHEN COMPARED TO THE IDENTICAL PERIOD IN 2005.

Districts with the LOWEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending Sept. 30, 2006 (compared to the identical period in 2005):

  1. District of the Virgin Islands: 8.51%
  2. District of Vermont: 23.10%
  3. Northern District of Indiana: 26.32%   
  4. Eastern District of Michigan: 28.07%
  5. Western District of Pennsylvania: 29.64%

Districts with the HIGHEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending Sept. 30, 2006 (compared to the identical period in 2005):

  1. Eastern District of Louisiana: 51.78%
  2. District of Utah: 51.41%
  3. District of Arizona: 50.92%      
  4. District of New Mexico: 49.10%       
  5. Northern District of West Virginia: 45.76%

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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.

 

Consumer Bankruptcy Filings Up 11 Percent Through Nine Months of 2010

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

 

CONSUMER BANKRUPTCY FILINGS UP 11 PERCENT THROUGH NINE MONTHS OF 2010


October 4, 2010, Alexandria, Va.— U.S. consumer bankruptcy filings totaled 1,165,172 nationwide during the first nine months of 2010 (Jan. 1-Sept. 30), an 11 percent increase over the 1,046,449 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). The consumer filings for the three-quarters of 2010 represent the highest total since 2005, when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) to try and stem the tide of filings.
 
“While the 2005 bankruptcy overhaul law aimed to reduce filings, overall consumer debt and continued financial stress have led to consumer bankruptcies climbing back to pre-BAPCPA levels,” said ABI Executive Director Samuel J. Gerdano. “We expect that there will be nearly 1.6 million new bankruptcy filings by year end.”
 
The overall September consumer filing total of 130,329 was 4.4 percent more than the 124,790 consumer filings recorded in September 2009. The September total also represented a 3.3 percent increase from the August 2010 total of 127,028 consumer filings. Chapter 13 filings constituted 30 percent of all consumer cases in September, a slight 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 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.

Consumer Bankruptcy Filings Down 8 Percent Through the First Half of 2011

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

CONSUMER BANKRUPTCY FILINGS DOWN 8 PERCENT THROUGH THE FIRST HALF OF 2011

 

July 5, 2011, Alexandria, Va. - U.S. consumer bankruptcy filings totaled 709,303 nationwide during the first six months of 2011 (Jan. 1-June 30), an 8 percent decrease from the 770,117 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). The overall June consumer filing total of 119,768 represented a 5 percent decrease from the 126,270 filings recorded in June 2010.

'The drop in bankruptcies for the first half of the year shows the continued efforts of consumers to reduce their household debt, and the overall pull back in consumer credit,' said ABI Executive Director Samuel J. Gerdano.

The June 2011 filings did represent a 4 percent increase from the May 2011 consumer bankruptcy total of 114,803 filings. The percentage of chapter 13 filings for June was 28 percent, a one percent increase from May.

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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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