February Consumer Bankruptcy Filings Increase 29 Percent over Last Year
Contact: John Hartgen
(703) 739-0800
[email protected]
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.
March Consumer Bankrutcy Filings Increase 41 Percent Over Last Year
Contact:
(703) 739-0800
[email protected]
MARCH CONSUMER BANKRUPTCY FILINGS INCREASE 41 PERCENT OVER LAST YEAR
April 2,
2009, Alexandria,
Va.— U.S. consumer bankruptcy filings increased 41 percent
nationwide in March from the same period a year ago, according to the
American Bankruptcy Institute (ABI), relying on data from the National
Bankruptcy Research Center (NBKRC). The overall March consumer filing
total of 121,413 represented nearly a 24 percent increase from the
February total of 98,344. Chapter 13 filings constituted 25 percent of
all consumer cases in March, nearly a 5 percent decrease from
February.
“Given the great financial stress facing U.S. households today,
the March numbers are consistent with our prediction of over 1.4 million
consumer filings for 2009,” said ABI Executive Director
Samuel J.
Gerdano.
###
*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
[email protected]
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.
Consumer Bankruptcy Filings Up 37 Percent in May
Contact: John Hartgen
703-739-0800
[email protected]
CONSUMER BANKRUPTCY FILINGS UP 37 PERCENT IN MAY
June 2, 2009, Alexandria, Va.— U.S. consumer bankruptcy
filings rose 37 percent nationwide in May 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
May consumer filing total of 124,838 was roughly level from the April
total of 125,618. Chapter 13 filings constituted 27 percent of all
consumer cases in May, slightly above the April rate.
“As consumers continue to face increasing levels of unemployment
and rising foreclosure rates, bankruptcy filings will continue to
accelerate as families seek financial relief from the tough economic
climate,” said ABI Executive Director Samuel J. Gerdano. “We
predict more than 1.4 million new bankruptcies 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 12,000 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 Filings Increase Nearly 35 Percent over First Quarter 2008 Business Filings Jump over 64 Percent
Contact: John Hartgen
(703) 739-0800
[email protected]
TOTAL BANKRUPTCY FILINGS INCREASE NEARLY 35 PERCENT OVER FIRST QUARTER 2008; BUSINESS FILINGS JUMP OVER 64 PERCENT
June 9, 2009, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first three months of 2009 increased 34.5 percent over the same period in 2008 nationwide, according to data released today by the Administrative Office of the U.S. Courts. As total filings reached 330,477 during the first calendar year quarter of 2009 (Jan. 1-March 31), the total surpassed the 245,695 new cases that were filed over the same period in 2008. The total filings in the 2009 first quarter also represent a 9.7 percent increase from the 301,317 bankruptcies filed during the fourth quarter of 2008 (Oct. 1 – Dec. 31).
“Consumers and businesses are increasingly seeking bankruptcy protection in order to shelter themselves from the financial storms brought on by the current economic climate,” said Samuel J. Gerdano, ABI Executive Director. “As unemployment figures continue to rise and financing remains elusive, we expect filings to surge past 1.4 million cases by year-end.”
Business filings for the three-month period ending March 31, 2009 totaled 14,319, representing a 64.3 percent increase over the first quarter 2008 total of 8,713. The first quarter 2009 business filing total also represented an 11 percent increase over the fourth quarter 2008 total of 12,901.
Consumer filings increased 33.4 percent to 316,158 for the three-month period ending March 31, 2009, from the 2008 first quarter total of 236,982. They also represent an 9.6 percent increase from the fourth quarter of 2008, which recorded a total of 288,416 nonbusiness filings. The percentage of consumers filing for chapter 13 protection fell slightly from 35.6 percent during the first quarter of 2008 (January 1-March 31) to 29.2 percent over the same period in 2009. The number of consumers filing for chapter 7 protection increased to 70.8 percent during the first three months of 2009, the largest percentage of consumer chapter 7 filers since the implementation of BAPCPA in 2005.
The 12-month filing total of 1,202,503 for the period ending March 31, 2009, is an increase of 33.3 percent from the same period in 2008, which totaled 901,927 filings. Nonbusiness filings for the 12-month period ending March 31, 2009, totaled 1,153,412, up 32.4 percent from the 871,186 total nonbusiness filings in the 12-month period ending March 31, 2008. Business filings for the 12-month period ending March 31, 2009, totaled 49,091, up 59.7 percent from the 30,741 business bankruptcy petitions filed in the 12-month period ending March 31, 2008.
The 819,362 total chapter 7 filings for the 12-month period ending March 31, 2009, represent a 46.3 percent increase from the 560,015 filings from the same period in 2008. Total chapter 13 filings increased 10.9 percent to 370,875 in the 12-month period ending March 31, 2009 from 334,551 in the same period last year. Total chapter 11 filings also increased, rising 69.1 percent to 11,785 in 2009 from 6,971 in 2008. Chapter 12 filings increased 7 percent to 367 in 2009 compared to 343 filings in 2008.
The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2009, is: 9,700 chapter 7s, 3,431 chapter 11s, 102 chapter 12s and 1,045 chapter 13s.
The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2009, is: 223,760 chapter 7s, 248 chapter 11s and 92,150 chapter 13s.
States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending March 31, 2009:
1. Tennessee
2. Nevada
3. Alabama
4. Georgia
5. Indiana
6. Michigan
7. Ohio
8. Kentucky
9. Arkansas
10. Illinois
Districts with the Highest PercentageINCREASE in Total Filings for the 12-month period ending March 31, 2009 (compared to the identical period in 2008):
- Central District of California: 92.9%
- District of Delaware: 86.0%
- District of Arizona: 82.5%
- Southern District of California: 74.1%
- TIE- District of Nevada and Eastern District of California: 69.9%
Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending March 31, 2009 (compared to the identical period in 2008):
- District of the Northern Mariana Islands: 38.5%
- District of the Virgin Islands: 26.1%
- Middle District of Louisiana: 13.4%
- Southern District of Texas: 4.3%
###
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.
Consumer Bankruptcy Filings Up Nearly 37 Percent Through First Half of 2009
Contact: John Hartgen
703-894-5935
[email protected]
CONSUMER BANKRUPTCY FILINGS UP NEARLY 37 PERCENT THROUGH FIRST HALF OF 2009
July 2, 2009, Alexandria, Va.— U.S. consumer bankruptcy
filings totaled 675,351 nationwide during the first six months of 2009
(Jan. 1-June 30), a 36.5 percent increase over the 494,610 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 116,365 was 40.6 percent more than the 82,770 consumer filings
recorded in June 2008. While the June total represented an increase over
the previous year, it was a 6.8 percent decrease from the May 2009 total
of 124,838 consumer filings. Chapter 13 filings constituted 27.7 percent
of all consumer cases in June, a slight increase from May.
“As unemployment, foreclosures rates and health care costs
continue to rise, more consumers are turning to bankruptcy as a last
financial resort,” said ABI Executive Director Samuel J.
Gerdano. “We expect that there will be more than 1.4
million new 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 12,000 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.
August Consumer Bankruptcy Filings Up 24 Percent over Last Year
Contact: John Hartgen
(703) 739-0800
[email protected]
AUGUST CONSUMER BANKRUPTCY FILINGS UP 24 PERCENT OVER LAST YEAR
September 2, 2009, Alexandria,
Va.— The 119,874 consumer bankruptcy filings in August represented
a 24 percent increase over last year’s monthly total, according to
the American Bankruptcy Institute (ABI), relying on data from the
National Bankruptcy Research Center (NBKRC). Although an increase over
the previous year, the August 2009 consumer filings represented a 5
percent decrease from the July 2009 total of 126,434.
Chapter 13 filings constituted
28.3 percent of all consumer cases in August, unchanged from the July
rate.
'Consumers are continuing to turn to bankruptcy as a shield from the
sustained financial pressures of today’s economy,' said ABI
Executive Director Samuel J. Gerdano. 'As a result, we
expect consumer filings to top 1.4 million this year.'
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,300 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.
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 U.S. Bankruptcies Up 36 Percent in First Half of 2009 Chapter 11 Business Filings Increase 113 Percent
Contact: John Hartgen
703-894-5935
[email protected]
TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2009 UP 36 PERCENT OVER FIRST HALF OF 2008; CHAPTER 11 BUSINESS FILINGS INCREASE 113 PERCENT
August 13, 2009, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first six months of 2009 increased 36 percent over the same six month period in 2008, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 711,550 during the first half of the calendar year of 2009 (January 1-June 30), compared to 522,205 cases filed over the same period in 2008.
“The increase in filings through the first half of this year is a product of continued financial stresses weighing on both consumers and businesses,” said ABI Executive Director Samuel J. Gerdano. “In this challenging economic environment, we expect bankruptcies to surge past 1.4 million by year end.”
Business filings for the six-month period ending June 30, 2009, totaled 30,333, representing a 64 percent increase over the first-half 2008 total of 18,456. Chapter 11 business reorganizations increased 113 percent to 7,396 during the first half of 2009 from 3,470 in the same period of 2008. Chapter 7 business liquidations increased to 20,375 in the first half of 2009, a 57 percent increase over the 13,002 business chapter 7 filings during the same period in 2008.
Filings by individuals or households with consumer debt increased 35 percent to 681,217 for the six-month period ending June 30, 2009, from the 2008 first-half total of 503,749. The overall percentage of consumers filing for chapter 13 protection fell slightly from 34 percent during the first half of 2008 (January 1-June 30) to 28 percent over the same period in 2009. Conversely, the first-half 2009 percentage of chapter 7 consumer filers increased to 72 percent from the 66 percent recorded in the first half of 2008.
The 381,073 total filings for the second calendar quarter 2009 (April 1-June 30) represented a 38 percent increase from the second quarter 2008 filing total of 276,510. Business filings in the second quarter of 2009 increased 64 percent to 16,014 over the 9,743 business filings in the second quarter 2008. The second quarter 2009 business filings were the highest total since the second quarter of 1993 when business filings reached 16,424. Consumer filings increased 37 percent from 266,767 recorded in the second quarter of 2008 to 365,059 filings in the second quarter 2009.
The 1,306,315 total filings for the 12-month period ending June 30, 2009, represented a 35 percent increase from the same period in 2008, which totaled 967,831. The bankruptcy filing rate per thousand U.S. residents totaled 4.22 for all chapters during the 12-month period ending June 30, 2009, as 2.93 Americans per thousand filed for chapter 7 while 1.24 per thousand filed for chapter 13 bankruptcy.
Nevada was the state with the highest per capita filing rate in the country with 9.33 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 6.67. The state with the highest per capita filing rate for chapter 13 bankruptcy was Tennessee at 4.35 per thousand for the 12-month period ended June 30, 2009.
Nonbusiness filings for the 12-month period ending June 30, 2009, were up to 1,251,294, a 34 percent increase from the 934,009 total nonbusiness filings over the same period in 2008. Business filings for the 12-month period ending June 30, 2009, totaled 55,021, up 63 percent from the 33,822 bankruptcy petitions filed in the 12-month period ending June 30, 2008.
The 907,603 total chapter 7 filings for the 12-month period ending June 30, 2009, represent a 47 percent increase from the 615,748 filings from the same period in 2008. Total chapter 11 filings increased 91 percent to 13,951 in the 12-month period ending June 30, 2009 from 7,293 during the same period in 2008. Total chapter 13 filings also increased 12 percent to 384,187 in the 12-month period ending June 30, 2009, from 344,421 during the same period last year. Chapter 12 filings increased 34 percent from 314 in the 12-month period ending June 30, 2008 to 422 in 2009.
Chapter breakdowns of BUSINESS filings for the 3-month period ending June 30, 2009: 10,675 chapter 7s; 3,965 chapter 11s; 139 chapter 12s; and 1,175 chapter 13s.
Chapter breakdown of NON-BUSINESS filings for the 3-month period ending June 30, 2009: 265,368 chapter 7s; 383 chapter 11s; and 99,308 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 12,000 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.
Consumer Bankruptcy Filings Reach Highest Monthly Total Since October 2005
Contact: John Hartgen
(703) 739-0800
[email protected]
CONSUMER BANKRUPTCY FILINGS REACH HIGHEST MONTHLY TOTAL SINCE 2005 BANKRUPTCY LAW OVERHAUL
August 4, 2009, Alexandria,
Va.— U.S. consumer bankruptcy filings reached 126,434 in July, the
highest monthly total since the Bankruptcy Abuse Prevention and Consumer
Protection Act was implemented in October 2005, according to the
American Bankruptcy Institute (ABI), relying on data from the National
Bankruptcy Research Center (NBKRC). The July 2009 consumer filing total
represented a 34.3 percent increase nationwide from the same period a
year ago, and an 8.7 percent increase over the June 2009 consumer filing
total of 116,365. Chapter 13 filings constituted 28.3 percent of all consumer
cases in July, slightly above the June rate.
'Today's bankruptcy filing number reflects the sustained and growing
financial stress on U.S. households,' said ABI Executive Director
Samuel J.
Gerdano. 'Rising unemployment on top of high
pre-existing debt burdens is a formula for higher bankruptcies through
the end of this year.'
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy
Overview: Issues, Law and Policy, by the American
Bankruptcy Institute.
Chapter
7 of the Bankruptcy Code is available to
both individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
Consumer Bankruptcy Filings Surge Past One Million in First Nine Months of 2009
Contact: John Hartgen
(703) 739-0800
[email protected]
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.