Press Release

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

Contact: John Hartgen
             703-894-5935
             [email protected]

 

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

1.     District of the Guam: -21.7%
2.     District of the Virgin Islands: -17.2%
3.     Eastern District of Tennessee: -10.5%
4.     Northern District of West Virginia: -10.3%
5.     Western District of New York: -9.9%
More information will be available at ABI’s Statistics Page, http://www.abiworld.org/statistics.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than nearly 13,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute

Chapter 7 of the Bankruptcy Code is available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor’s available non-exempt property.  Unsecured debts not reaffirmed are discharged, providing a fresh financial start. 

Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.

Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.

Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part. 

February Consumer Bankruptcy Filings Increase 11 Percent from Previous Month

Contact: John Hartgen
             703-894-5935
             [email protected]

 

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.


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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 12,800 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 

First Quarter Consumer Bankruptcy Filings Fall 6 Percent from 2010

Contact: John Hartgen
             703-894-5935
             [email protected]

 

FIRST QUARTER CONSUMER BANKRUPTCY FILINGS FALL 6 PERCENT FROM 2010


 
April 4, 2011, Alexandria, Va.— Consumer bankruptcies for the first quarter of 2011 (Jan. 1 – March 31) decreased 6 percent nationwide from the same time period in 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 the first three months of 2011 (Jan. 1-March 31) reached 340,012, down from the 363,215 consumer filings recorded for the first quarter of 2010.
 
“Though bankruptcy filings are still elevated, consumers continue to take steps to reduce debt levels and shore up their finances,” said ABI Executive Director Samuel J. Gerdano. “As a result, we now expect that consumer bankruptcy filings will dip below the 1.5 million filings recorded last year.”
 
A month-by-month look at the data showed that the overall consumer filing total for March reached 144,657, up from the 102,686 consumer filings recorded in February 2011. Though an increase from the previous month, the March 2011 consumer bankruptcy total represents a 3 percent decrease from the 149,268 filings recorded in March 2010. Chapter 13 filings constituted 26 percent of all consumer cases in March, a slight decrease from February.


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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.

First Quarter Bankruptcy Filings Fall 6 Percent from 2010 Business Filings Drop 15 Percent

Contact: John Hartgen
             703-894-5935
             [email protected]

 

FIRST QUARTER BANKRUPTCY FILINGS FALL 6 PERCENT FROM 2010; BUSINESS FILINGS DROP 15 PERCENT


 
May 6, 2011, Alexandria, Va.— The total number of U.S. bankruptcy cases filed during the first three months of 2011 decreased 6 percent over the same period in 2010, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 366,178 during the first calendar year quarter of 2011 (Jan. 1-March 31), a drop from the 388,148 new cases that were filed over the same period in 2010. The total filings in the 2011 first quarter also represent a 1 percent decrease from the 370,080 bankruptcies filed during the fourth quarter of 2010 (Oct. 1 – Dec. 31).
 
“The drop in bankruptcy filings demonstrates the continued effort of both consumers and businesses to decrease their debt loads and shore up their finances,” said Samuel J. Gerdano, ABI Executive Director.  “We expect that bankruptcy filings for 2011 will fall below last year’s total of 1.5 million.”
 
Consumer filings fell 5 percent to 353,802 for the three-month period ending March 31, 2011, from the 2010 first quarter total of 373,541. They also represent a 1 percent decrease from the fourth quarter of 2010, which recorded a total of 357,050 nonbusiness filings. The percentage of consumers filing for chapter 13 protection increased slightly from 27.1 percent during the first quarter of 2010 (January 1-March 31) to 28.6 percent over the same period in 2011. The number of consumers filing for chapter 7 protection fell slightly from 72.8 percent during the first three months of 2010 to 71.3 percent for the period ending March 31, 2011.
 
Business filings for the three-month period ending March 31, 2011 totaled 12,376, representing a 15 percent decrease over the first quarter 2010 total of 14,607. The first quarter 2011 business filing total also represented a 5 percent decrease from the fourth quarter 2010 total of 13,030.
 
The 12-month filing total of 1,571,183 for the period ending March 31, 2011, is an increase of 2.6 percent from the same period in 2010, which totaled 1,531,997 filings. Nonbusiness filings for the 12-month period ending March 31, 2011, totaled 1,516,971, up 3 percent from the 1,470,849 total nonbusiness filings in the 12-month period ending March 31, 2010. Business filings fell over 11 percent for the 12-month period ending March 31, 2011 to 54, 212, down from the 61,148 business filings in the 12-month period ending March 31, 2010.
The 1,118,481 total chapter 7 filings for the 12-month period ending March 31, 2011, represent a 2 percent increase from the 1,100,032 filings from the same period in 2010. Total chapter 13 filings increased 5 percent to 438,788 in the 12-month period ending March 31, 2011 from 415,966 in the same period last year.  During this same 12-month period, total chapter 11 filings decreased, falling 14 percent to 13,051 in 2011 from 15,251 in 2010. Chapter 12 filings increased 23 percent to 743 in 2011 compared to 605 filings in 2010.
The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2011, is: 8,615 chapter 7s, 2,605 chapter 11s, 181 chapter 12s and 949 chapter 13s.
 
The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2011, is: 252,338 chapter 7s, 458 chapter 11s and 101,006 chapter 13s.
 
States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending March 31, 2011:
 
1.     Nevada
2.     Georgia
3.     Tennessee
4.     California
5.     Indiana
6.     Alabama
7.     Utah
8.     Michigan
9.     Arizona
10.  Colorado
 
Districts with the HIGHEST PERCENTAGE INCREASE in total filings for the 12-month period ending March 31, 2011 (compared to the identical period in 2010):
 
1.     Southern District of Florida: 26.5%
2.     Central District of California: 22.8%
3.     District of Utah: 19.7%
4.     District of Hawaii: 18.1%
5.     District of Arizona: 11.9%


 
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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.
*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.

May Consumer Bankruptcy Filings Fall 16 Percent from Last Year

Contact: John Hartgen
             703-894-5935
             [email protected]

MAY CONSUMER BANKRUPTCY FILINGS FALL 16 PERCENT FROM LAST YEAR


 
June 2, 2011, Alexandria, Va. — May consumer bankruptcies decreased 16 percent nationwide from May 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 May reached 114,803, down from the 136,142 consumer filings recorded in May 2010.
 
“The continued drop in bankruptcies during 2011 reflects the pull back in consumer credit over the past year, and a reduction in household debt,” said ABI Executive Director Samuel J. Gerdano.
 
The May 2011 filings also represented a 15 percent decrease from the April 2011 consumer bankruptcy total of 134,720 filings. The percentage of chapter 13 filings for May was 27 percent, a one percent increase from April.
 

###

 
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 Down 8 Percent Through the First Half of 2011

Contact: John Hartgen
             703-894-5935
             [email protected]

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.

###

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

 

July Consumer Bankruptcy Filings Fall 18 Percent from Last Year

Contact: John Hartgen
             703-894-5935
             [email protected]

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. 

 

August Consumer Bankruptcy Filings Fall 11 Percent from Last Year

Contact: John Hartgen
             703-894-5935
             [email protected]

AUGUST CONSUMER BANKRUPTCY FILINGS FALL 11 PERCENT FROM LAST YEAR

September 2, 2011, Alexandria, Va. — August consumer bankruptcies decreased 11 percent nationwide from August 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 August declined to 113,432, down from the 127,028 consumer filings recorded in August 2010. Each month of 2011 has recorded fewer bankruptcies than last year.
 
“Consumer bankruptcies continue to decline over the past year as households deleverage and consumer credit remains tight,” said ABI Executive Director Samuel J. Gerdano. “As a result, total consumer filings will be lower in 2011 than the 1.5 million consumer cases in 2010.”
 
The August 2011 filings also represented a less than a 1 percent decrease from the July 2011 consumer bankruptcy total of 113,470 filings. The percentage of chapter 13 filings for August was 30 percent, a one percent increase from July.

###

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 Down 10 Percent Through Nine Months of 2011

Contact: John Hartgen
             703-894-5935
             [email protected]

CONSUMER BANKRUPTCY FILINGS DOWN 10 PERCENT THROUGH NINE MONTHS OF 2011

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

###

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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