Total Bankruptcy Filings Up 33 Percent in Third Quarter
Contact: John Hartgen
(703) 739-0800
[email protected]
TOTAL BANKRUPTCY FILINGS UP 33 PERCENT IN THIRD QUARTER
November 25, 2009 Alexandria, Va.— The 388,485 total U.S. bankruptcies filed during the third quarter of 2009 (July 1 – Sept. 30) represented a 33 percent increase over the 292,291 cases filed over the same period in 2008, according to data released today by the Administrative Office of the U.S. Courts. Total filings for the first nine months of 2009 (Jan. 1 – Sept. 30) were up 35 percent to 1,100,035, compared to the 814,496 filings during the same period in 2008. Bankruptcies are at the highest level since the 2005 amendments to the Bankruptcy Code.
“The spike in bankruptcy filings for both consumers and businesses reflects the continuing effects of today’s weak economy,” said ABI Executive Director Samuel J. Gerdano. “With unemployment surpassing 10 percent and credit to businesses remaining tight, consumers and businesses are increasingly turning to the financial relief of bankruptcy.”
The 45,510 business bankruptcies recorded during the first three quarters of 2009 (Jan. 1 – Sept. 30) have eclipsed the full year 2008 (Jan. 1- Dec. 31) business filing total of 43,546. Business filings during the three-month period ending Sept. 30, 2009, totaled 15,177 filings, up 32 percent over the 11,504 business filings in 2008. Chapter 11 business filings rose to 3,060 during the third quarter of 2009, an increase of 23 percent over the 2,485 filings during the similar period in 2008. Chapter 7 business filings also increased to 10,798during the three-month period ending Sept. 30, 2009, representing a 36 percent spike over the 7,927 filings during the same period in 2008.
Consumer filings totaled 373,308 during the third quarter of 2009 (July 1-Sept. 30), representing a 33 percent increase over the 280,787 filed during the same period of 2008. Consumer chapter 7 filings during the 2009 third quarter totaled 265,721, an increase of 42 percent over the 2008 third quarter total of 187,227. Chapter 13 consumer filings also increased during the three-month period ending Sept. 30, 2009, with the 107,142filings, representing an 15 percent increase over the 93,333 filings during the same period in 2008.
The 1,402,816 total filings for the 12-month period ending Sept. 30, 2009, were up more than 34 percent from the same period in 2008, which totaled 1,042,993. The bankruptcy filing rate per thousand U.S. residents totaled 4.52 for all chapters during the 12-month period ending Sept. 30, 2009, as 3.19 Americans per thousand filed for chapter 7 while 1.28 per thousand filed for chapter 13 bankruptcy, all increases from the similar period a year ago. Nevada was the state with the highest per capita filing rate in the country, with 10.49 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 7.53. The state with the highest per capita filing rate for chapter 13 bankruptcy was Tennessee at 4.36 per thousand for the 12-month period ended Sept. 30, 2009.
Nonbusiness filings for the 12-month period ending Sept. 30, 2009, totaled 1,344,095, an increase of 34 percent from the 1,004,342 total nonbusiness filings calculated over the same period in 2008. Business filings for the 12-month period ending Sept. 30, 2009, totaled 58,721, up 52 percent from the 38,651 bankruptcy petitions filed in the 12-month period ending Sept. 30, 2008.
The 989, 227 total chapter 7 filings for the 12-month period ending Sept. 30, 2009, represent a 45 percent increase from the 679,982 filings from the same period in 2008. Chapter 11 filings also increased, rising 68 percent to 14,745 in 2009 from 8,799 in 2008. Total chapter 13 filings increased 13 percent to 398,210 in the 12-month period ending Sept. 30, 2009, from 353,828 in the same period last year. Chapter 12 filings also increased 47 percent from 332 in 2008 to 487.
BUSINESS FILINGS for the 3-month period ending Sept. 30, 2009, totaled 15,177, up 32 percent from the 11,504 bankruptcy business cases filed in the same period in 2008. NON-BUSINESS FILINGS for the 3-month period ending Sept. 30, 2009, increased 33 percent from 280,787 in 2008 to 373,308 in 2009.
The chapter* breakdown of BUSINESS filings for the 3-month period ending Sept. 30, 2009, is: 10,798 chapter 7s, 3,060 chapter 11s, 155 chapter 12s and 1,147 chapter 13s.
The chapter breakdown of NON-BUSINESS filings for the 3-month period ending Sept. 30, 2009, is: 265,721 chapter 7s, 445 chapter 11s and 101,142 chapter 13s.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,400 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.
October Consumer Bankruptcy Filings Reach New Highs Up 28 Percent Over Last Year
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Contact: Carolyn Kanon OCTOBER CONSUMER BANKRUPTCY FILINGS REACH NEW HIGHS, UP 28 PERCENT OVER LAST YEAR
November 4, 2009 Alexandria, Va. — The 135,913 consumer bankruptcy filings in October represented a 27.9 percent increase over last October's monthly total of 106,266, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The October 2009 consumer filings represented an 8.9 percent increase from the September 2009 total of 124,790. Chapter 13 filings constituted 28.5 percent of all consumer cases in October, a slight increase from the September rate. 'The nearly 9 percent increase in consumer bankruptcy filings in October, together with a 7 percent jump reported in business cases, demonstrates the sustained stress on the U.S. economy,' said ABI Executive Director Samuel J. Gerdano. ABI forecasts that total bankruptcies this year will exceed 1.4 million, the highest number since 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 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 http://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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November Consumer Bankruptcy Filings Drop 18 Percent from Previous Month
Contact: John Hartgen
703-894-5935
[email protected]
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.'
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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 12,400 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.
January Consumer Bankruptcy Filings Decrease 10 Percent from December
Contact: John Hartgen
(703) 894-5935
[email protected]
JANUARY CONSUMER BANKRUPTCY FILINGS DECREASE 10 PERCENT FROM DECEMBER
February 2, 2010, Alexandria, Va.— The 102,254 consumer bankruptcies filed in January represented a 10 percent decrease nationwide from the 113,274 consumer filings recorded in December, according to the American Bankruptcy Institute (ABI) relying on data from the National Bankruptcy Research Center (NBKRC). NBKRC’s data also showed that the January 2010 consumer filings represented a 15 percent increase over the 88,773consumer filings recorded in January 2009. Chapter 13 filings constituted 30 percent of all consumer cases in January, representing a 2 percent increase from December.
“While January represented a drop in filings from the previous month, high unemployment rates, unsustainable mortgage burdens and other economic stresses will push more consumers to seek the financial relief of bankruptcy in 2010,” said ABI Executive Director Samuel J. Gerdano. “Consumer filings this year will likely surpass the 1.4 million consumer filings recorded in 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 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.
*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 Bankruptcy Filings Reach Highest Monthly Total Since 2005 Bankruptcy Overhaul
Contact: John Hartgen
703-894-5935
[email protected]
MARCH CONSUMER BANKRUPTCY FILINGS REACH HIGHEST MONTHLY TOTAL SINCE 2005 BANKRUPTCY OVERHAUL
April 2, 2010 Alexandria, Va. —The 149,268 consumer bankruptcies filed in March represented the highest monthly consumer filing total since Congress overhauled the Bankruptcy Code in 2005, according to the American Bankruptcy Institute (ABI) relying on data from the National Bankruptcy Research Center (NBKRC). The March filing total represented a 34 percent increase from the February filing total of 111,693 and a 23 percent increase from March 2009 total of 121,413. Chapter 13 filings constituted 25 percent of all consumer cases in March, representing a 2 percent decrease from February.
“The sustained economic pressures of unemployment coupled with high pre-existing debt burdens are a formula for consumer filings to surpass 1.5 million filings,” said ABI Executive Director Samuel J. Gerdano. “As consumers continue to look to bankruptcy for financial shelter, annual filings will likely equal those averaged in the years leading up to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.”
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,600 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions
from Bankruptcy Overview: Issues, Law and Policy, by the
American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
First Quarter Bankruptcy Filings Increase Nearly 18 Percent over 2009 More Consumers Filing Chapter 7
Contact: John Hartgen
703-894-5935
[email protected]
FIRST QUARTER BANKRUPTCY FILINGS INCREASE NEARLY 18 PERCENT OVER 2009; MORE CONSUMERS FILING CHAPTER 7
May 14, 2010, Alexandria, Va.— The total number of U.S. bankruptcy cases filed during the first three months of 2010 increased 17.5 percent over the same period in 2009, according to data released today by the Administrative Office of the U.S. Courts. As total filings reached 388,148 during the first calendar year quarter of 2010 (Jan. 1-March 31), the total surpassed the 330,394 new cases that were filed over the same period in 2009. The total filings in the 2010 first quarter also represent a 4.3 percent increase from the 372,203 bankruptcies filed during the fourth quarter of 2009 (Oct. 1 – Dec. 31).
“As Congress continues to consider financial regulatory reforms to address the causes of the economic downturn, consumers and business are still turning to bankruptcy to find relief from financial distress,” said Samuel J. Gerdano, ABI Executive Director. “We expect filings to surge past 1.5 million cases by year-end.”
Consumer filings increased 18.2 percent to 373,541 for the three-month period ending March 31, 2010, from the 2009 first quarter total of 316,158. They also represent a 4.6 percent increase from the fourth quarter of 2009, which recorded a total of 357,183 nonbusiness filings. The percentage of consumers filing for chapter 13 protection fell slightly from 29.2 percent during the first quarter of 2009 (January 1-March 31) to 27.1 percent over the same period in 2010. The number of consumers filing for chapter 7 protection increased to 72.8 percent during the first three months of 2010, the largest percentage of consumer chapter 7 filers since the implementation of BAPCPA in 2005.
Business filings for the three-month period ending March 31, 2010 totaled 14,607, representing a 2 percent increase over the first quarter 2009 total of 14,319. The first quarter 2010 business filing total represented a 2.8 percent decrease, however, from the fourth quarter 2009 total of 15,020.
The 12-month filing total of 1,531,997 for the period ending March 31, 2010, is an increase of 27.4 percent from the same period in 2009, which totaled 1,202,395 filings. Nonbusiness filings for the 12-month period ending March 31, 2010, totaled 1,470,849, up 27.5 percent from the 1,153,318 total nonbusiness filings in the 12-month period ending March 31, 2009. Business filings for the 12-month period ending March 31, 2010, totaled 61,148, up 24.6 percent from the 49,077 business filings in the 12-month period ending March 31, 2009.
The 1,100,032 total chapter 7 filings for the 12-month period ending March 31, 2010, represent a 34.2 percent increase from the 819,304 filings from the same period in 2009. Total chapter 13 filings increased 12.2 percent to 415,966 in the 12-month period ending March 31, 2010 from 370,836 in the same period last year. During this same 12-month period, total chapter 11 filings also increased, rising 29.5 percent to 15,251 in 2010 from 11,774 in 2009, and chapter 12 filings increased 64.8 percent to 605 in 2010 compared to 367 filings in 2009.
The chapter breakdown of BUSINESS filings for the 3-month period ending March 31, 2010, is: 10,074 chapter 7s, 3,293 chapter 11s, 163 chapter 12s and 1,043 chapter 13s.
The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2010, is: 272,048 chapter 7s, 440 chapter 11s and 101,051 chapter 13s.
States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending March 31, 2010:
- Nevada
- Tennessee
- Georgia
- Indiana
- Alabama
- Michigan
- Ohio
- California
- Illinois
- Kentucky
Districts with the HIGHEST PERCENTAGE INCREASE in total filings for the 12-month period ending March 31, 2010 (compared to the identical period in 2009):
1. District of Arizona: 69.2%
2. District of the Virgin Islands: 58.8%
3. Central District of California: 57.8%
4. District of Wyoming: 53.3%
5. Northern District of California: 50.5%
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,600 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
*Definitions from Bankruptcy
Overview: Issues, Law and Policy, by the American Bankruptcy
Institute
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
April Consumer Bankruptcy Filings Up 15 Percent over Last Year
Contact: John Hartgen
703-894-5935
[email protected]
APRIL CONSUMER BANKRUPTCY FILINGS UP 15 PERCENT OVER LAST YEAR
May 3, 2010, Alexandria, Va.— The 144,490 consumer bankruptcies filed in April represented a 15 percent increase nationwide over the 125,618 filings recorded in April 2009, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). NBKRC’s data also showed that the April consumer filings represented a 3 percent decrease from the 149,268 consumer filings recorded in March 2010. Chapter 13 filings constituted 25 percent of all consumer cases in April, remaining unchanged from March.
“As Congress continues to consider measures to protect and assist consumers, bankruptcy is still the last resort for families coping with unemployment and increasing debt loads,” said ABI Executive Director Samuel J. Gerdano. “Consumer filings this year will likely surpass 1.5 million filings.”
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,600 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
ABIs New Interactive Statistics Page Provides Better Tools for Examining Bankruptcy Statistics
Contact: John Hartgen
703-894-5935
[email protected]
ABI’S NEW INTERACTIVE STATISTICS PAGE PROVIDES BETTER TOOLS FOR EXAMINING BANKRUPTCY STATISTICS
May 6, 2010, Alexandria, Va.— The American Bankruptcy Institute (ABI) has created new online interactive charts, graphs and other easy-to-use tools to allow members of the public to gather statistical information on bankruptcy filings dating back to 1980. The new interactive charts improve upon the information currently on ABI’s “Bankruptcy Statistics” page by providing the user the ability to easily select and search bankruptcy statistical information provided by the Administrative Office of the U.S. Courts. Users may research filings by chapter of the Bankruptcy Code (7, 11, 12 or 13), type (consumer or business), state, circuit, year or some combination of these search categories.
Please click the following link to view ABI’s new interactive statistics page: http://www.abiworld.org/bkstats/index.html
The interactive website provides instructions on the home page and individual instructions for the four different sections. The easy-to-use interactive features also allow you to generate data from the graphs, convert information to a PDF document or Excel chart, or to create an image. If you need any assistance using this webpage or would like to reproduce this information in electronic or written format, please contact John Hartgen at 703-894-5935 or [email protected].
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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.
May Consumer Bankruptcy Filings Up 9 Percent from Last Year Down 6 Percent from April
Contact: John Hartgen
(703) 894-5935
[email protected]
MAY CONSUMER BANKRUPTCY FILINGS UP 9 PERCENT FROM LAST YEAR; DOWN 6 PERCENT FROM APRIL
June 2, 2010, Alexandria, Va.— The 136,142 consumer bankruptcies filed in May represented a 9 percent increase nationwide over the 124,838 filings recorded in May 2009, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). NBKRC’s data also showed that the May consumer filings represented a 6 percent decrease from the 144,490 consumer filings recorded in April 2010. Chapter 13 filings constituted 26 percent of all consumer cases in May, a slight increase from April.
“While consumer filings dipped slightly from last month, housing debt and other financial burdens weighing on consumers are still a cause for concern,” said ABI Executive Director Samuel J. Gerdano. “Consumer filings this year remain on track to top 1.6 million filings.”
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,600 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from
Bankruptcy Overview: Issues, Law
and Policy, by the
American Bankruptcy Institute.
Chapter
7 of the Bankruptcy Code is available to both individual and
business debtors. Its purpose is to achieve a fair distribution to
creditors of the debtor’s available non-exempt property.
Unsecured debts not reaffirmed are discharged, providing a fresh
financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
Consumer Bankruptcy Filings Up 14 Percent through First Half of 2010
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Contact: Carolyn Kanon CONSUMER BANKRUPTCY FILINGS UP 14 PERCENT THROUGH FIRST HALF OF 2010
July 2, 2010 Alexandria, Va. — U.S. consumer bankruptcy filings totaled 770,117 nationwide during the first six months of 2010 (Jan. 1-June 30), a 14 percent increase over the 675,351 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 first half of 2010 represent the highest total since 2005, when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act to try and stem the tide of filings, although the number of monthly consumer filings has been steadily decreasing since March. 'Years of rising consumer debt and low savings rates, combined with the housing and unemployment crises, are causing bankruptcy levels not seen since the 2005 amendments to the Bankruptcy Code,' said ABI Executive Director Samuel J. Gerdano. 'We expect that there will be more than 1.6 million new bankruptcy filings by year end.' The overall June consumer filing total of 126,270 was 8.5 percent more than the 116,365 consumer filings recorded in June 2009. While the June total represented an increase over the previous year, it was a 7.8 percent decrease from the May 2010 total of 136,142 consumer filings. Chapter 13 filings constituted 27 percent of all consumer cases in June, a slight increase from May. 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 http://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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