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2006 Bankruptcies Fall to Lowest Levels Since 1980s

Contact: John Hartgen
             (703) 739-0800
            
[email protected]

 

2006 BANKRUPTCIES FALL TO LOWEST LEVELS SINCE 1980s

April 17, 2007 Alexandria, Va. —Bankruptcy filings in the United States dropped to their lowest level since 1988 as calendar year 2006 filings plunged following the implementation of the new bankruptcy law in 2005, according to data from the Administrative Office of the U.S. Courts (AOUSC). One year after the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was implemented on Oct. 17, 2005, total bankruptcy filings for calendar year 2006 dropped to 617,660, representing the lowest filing total since 613,465 total filings were recorded for the 12-month period ending Dec.31, 1988. The total filings for the 12-month period ending Dec. 31, 2006, represent a 70.28 percent decrease compared with the record total of 2,078,415 filings for the same period in 2005.

Consumer bankruptcies recorded the sharpest decrease; the 597,965 consumer filings during calendar year 2006 represented a 70.68 percent drop in filings from the record 2,039,214 filings made during the 12-month period ending Dec. 31, 2005. The 12-month filing total for 2006 was the lowest since the 549,612 filings were recorded for the 12-month period ending Dec. 31, 1988.  

'The final government statistics merely confirm what all in the bankruptcy world had already experienced: a historic drop-off in 2006 activity almost entirely due to the after-effect of the 2005 law changes,' said ABI Executive Director Samuel J. Gerdano. 'But as the debt burden on the household sector remains high, most expect consumer bankruptcies to bounce back by the end of this year,' he said.

While the number of consumer filings reached their lowest point since 1988, the 2006 calendar year consumer filings revealed a noticeable shift in the type of bankruptcies being filed by consumers. Largely the result of stricter requirements under BAPCPA, the 248,430 chapter 13 cases filed for the 12-month period ending Dec. 31, 2006, represented 41.55 percent of the overall consumer filing total. The 349,012 consumers who filed for chapter 7 during the 12-month period ending Dec. 31, 2006, comprised 58.37 percent of the total consumer filings for the 2006 calendar year. The filing pattern was vastly different from 2005, when there were 1,631,011 chapter 7 cases filed, representing 79.98 percent of total bankrupt consumer filings, while only 19.97 percent of consumer cases, representing 407,322 filings, were filed under chapter 13 during the 12-month period ending Dec. 31, 2005.

The 19,695 business filings during the 12-month period ending Dec. 31, 2006, were the lowest on record under the current statistics reporting system, which was implemented in 1980. The previous lowest business filing total for a 12-month period was recorded in 2004, with 34,317 business bankruptcies filed. The 2006 filing total also represents 49.78 percent decrease from the 39,201 business bankruptcy filings during the 12-month period ending Dec. 31, 2005.

The 177,599 total bankruptcies recorded during the 4th calendar quarter of 2006 (Oct.1-Dec. 31, 2006) represent a 73.39 percent drop from the 667,431 filings during the similar period in 2005. Total filings for the month of October registered a 90.23 percent drop from 2005 as 61,592 filings were recorded for the month in 2006 as compared to the 630,497 cases that were filed in October 2005 leading up to the implementation of BAPCPA that year. Despite the drop-off from the previous year, the 2006 4th calendar quarter filing total was the highest of any previous quarter for 2006 and represented a 3.63 percent increase over the 3rd quarter (July 1 – Sept. 30) total of 171,146.

The 172,013 consumer filings in the 4th quarter of 2006 represent a 73.72 percent decrease in comparison to the 654,633 consumer filings for the same quarter of 2005. The consumer filing total for the 4th calendar quarter did, however, represent a 3.58 percent increase from the previous total of 165,862 filings from the 3rd quarter of 2006.

Business filings, which totaled 5,586 for the 4th calendar quarter of 2006, represented a 56.35 percent decrease from the 12,798 filed in the same 3-month period in 2005 (Oct. 1-Dec. 31). Business filings did rise from the previous quarter as the 4th calendar quarter represented a 5.41 percent increase over 5,284 business filings reported during the 3rd quarter of 2006 (July 1- Sept. 30).

The chapter* breakdown of BUSINESS filings for the 3-month period ending Dec.31, 2006, is 3,567 chapter 7s, 1,170 chapter 11s, 74 chapter 12s and 763 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the 3-month period ending Dec. 31, 2006, is 98,824 chapter 7s, 134 chapter 11s and 73,052 chapter 13s.

Districts with the LOWEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending Dec. 31, 2006 (compared to the identical period in 2005):

  1. Western District of Tennessee: 45.29%
  2. Southern District of Georgia: 46.49%
  3. District of the Northern Mariana Islands: 46.88%
  4. Northern District of Georgia: 51.22%
  5. Middle District of Tennessee: 51.68%

Districts with the HIGHEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending Dec. 31, 2006 (compared to the identical period in 2005):

  1. Eastern District of Louisiana: 85.14%
  2. Southern District of West Virginia: 84.01%
  3. Eastern District of Oklahoma: 83.75%
  4. Western District of Oklahoma: 81.79%
  5. Northern District of West Virginia: 81.21%

More information will be available at  ABI’s Statistics Page, http://www.abiworld.org/statistics.

###

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute

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

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

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

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

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.

First Quarter Consumer Bankruptcy Filings Increase 27 Percent over Previous Year

Contact: John Hartgen
             703-739-0800
             [email protected]

FIRST QUARTER CONSUMER BANKRUPTCY FILINGS INCREASE 27 PERCENT OVER PREVIOUS YEAR

April 2, 2008, Alexandria, Va. U.S. consumer bankruptcy filings increased 27.0 percent nationwide in the first quarter of 2008 (Jan. 1- March 31) over the same period in 2007, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The March consumer filings of 86,165 were up 13.2 percent from the 76,120 consumer filings recorded in February and up 16.6 percent from the consumer filings in March 2007. Chapter 13 filings constituted 31.8 percent of all consumer cases in March, down slightly from last month.  

“Bankruptcies are rising due to the heavy burden of household debt and growing mortgage problems,” said ABI Executive Director Samuel J. Gerdano. “We expect this trend to continue through 2008.”

###

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.

*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute.

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

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

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

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

Bankruptcy Filings During First Half of 2006 Fall to Lowest Levels Since 1986

Contact: John Hartgen
             (703) 739-0800
            
[email protected]

 

BANKRUPTCY FILINGS DURING FIRST HALF OF 2006 FALL TO LOWEST LEVELS SINCE 1986

August 28, 2006, Alexandria, Va. The total number of U.S. bankruptcies filed during the first six months of 2006 were the lowest first-half calendar year filings on record in 20 years, as filings for the period from Jan. 1 – June 30, 2006 fell to 272,604 from 868,482, the total number of filings for the same period in 2005, according to data released today by the Administrative Office of the U.S. Courts. When combined, the 2006 second-quarter  (April 1 – June 30) bankruptcy filings total of 155,833 and the first-quarter (Jan. 1 – March 31, 2006) filings total of 116, 771 represent the lowest number of calendar filings for the first six months of a year since the first half of 1986, when bankruptcy filings totaled 258,311. The 2006 first-half filings also represent a 68.61 percent drop in filings from the previous year’s first-half filings (Jan. 1-June 30, 2005), when 868,482 bankruptcies were filed. The 2006 second-quarter filings also represent a 66.65 percent drop compared with the 467,333 total filings for the same three-month period ending June 30, 2005.

Total consumer filings for the six-month period from Jan. 1 – June 30, 2006 were 263,660, representing a 69.04 percent decrease from the same period in 2005, in which consumer filings totaled 851,683. The 8,944 business filings from Jan. 1 – June 30, 2006, represented a 46.76 percent decrease from the same period the previous year, in which 16,799 business filings were recorded.

Due in large part to the new requirements of the Bankruptcy Abuse Protection and Consumer Protection Act of 2005 (BAPCPA), the type of consumer bankruptcies filed in the first half of 2006 shifted considerably from the first half of 2005. Chapter 13 filings represented 41.15 percent of all consumer filings in the six-month period ending June 30, 2006, up from 24.15 percent during the same period of 2005. Conversely, the percentage of consumer chapter 7 filings fell to 58.76 percent of total consumer filings in the six-month period ending June 30, 2006, from 75.81 percent in the first calendar half of 2005.

The 1,484,570 total filings during the 12-month period ending June 30, 2006, represent the lowest number of filings in a 12-month period since the 12-month period ending Sept. 30, 2001, when there were 1,437,354 filings. Total filings decreased from the 1,794,795 filings reported for the 12-month period ending March 31, 2006.

Nonbusiness filings for the 12-month period ending June 30, 2006, fell 9.46 percent to 1,453,008 from the 1,604,848 total nonbusiness filings in the 12-month period ending June 30, 2005. The 31,562 total business filings for the 12-month period ending June 30, 2006 represented a 2.6 percent decrease from the 32,406 bankruptcy petitions filed in the 12-month period ending June 30, 2005.

Chapter 13 filings fell 29.48 percent to 313,085 in the 12-month period ending June 30, 2006, from 443,945 in the same period last year. Chapter 11 filings also declined, falling 7.15 percent to 6,224 in the 12-month period ending June 30, 2006, from 6,703 in 2005. Conversely, chapter 12 filings rose 24.14 percent from 290 in the 12-month period ending June 30, 2005, to 360 in 2006.

BUSINESS FILINGS for the three-month period ending June 30, 2006, totaled 4,858, down 44.39 percent from the 8,736 bankruptcy business cases filed in the same period in 2005. NONBUSINESS FILINGS for the three-month period ending June 30, 2006, decreased 67.08 percent from 458,597 in the same period in 2005 to 150,975.

The chapter* breakdown of BUSINESS filings for the three-month period ending June 30, 2006, is: 2,940 chapter 7s, 1,079 chapter 11s, 99 chapter 12s and 729 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the three-month period ending June 30, 2006, is: 91,674 chapter 7s, 131 chapter 11s and 59,170 chapter 13s.

Districts with the Highest Percentage INCREASE in Total Filings for the 12-month period ending June 30, 2006 (compared to the identical period in 2005):

  1. District of Vermont: 11.86%
  2. Northern District of Indiana: 10.63%
  3. District of Alaska: 8.71%         
  4. District of the Northern Mariana Islands: 7.14%
  5. District of Nevada: 5.98%

Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending June 30, 2006 (compared to the identical period in 2005):

  1. Eastern District of Louisiana: 33.96%
  2. District of Utah: 31.92%
  3. Southern District of Georgia: 29.88%   
  4. Southern District of Alabama: 29.67% 
  5. Middle District of Georgia: 28.79%

###

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute.

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

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

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

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

 

Consumer Bankruptcy Filings Up 14 Percent through First Half of 2010

Contact: Carolyn Kanon
             703-739-0800
             [email protected]

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.

 

Bankruptcy Filings Will Increase in Fiscal Year 2011 According to Latest ABI Quick Poll

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

BANKRUPTCY FILINGS WILL INCREASE IN FISCAL YEAR 2011, ACCORDING TO LATEST ABI QUICK POLL


 
January 31, 2011, Alexandria, Va.— A majority of respondents (74 percent) in a recent ABI Quick Poll predicted that bankruptcy filings will increase in fiscal year 2011. Fifty-three percent of respondents “strongly agreed” that filings would increase, while 21 percent “somewhat agreed” that filings would increase. 
 
Total bankruptcies for fiscal year 2010 (Oct. 1, 2009-Sept. 30, 2010), were 1,596,355, up 14 percent over total FY 2009 bankruptcy filings of 1,402,816, according to the Administrative Office of the U.S. Courts. Bankruptcies have increased each fiscal year since 2005, when Congress overhauled the Bankruptcy Code to reduce the number of consumers and businesses filing for bankruptcy.
 
Twenty-one percent of respondents did not think that bankruptcy filings would increase in fiscal year 2011. Seventeen percent “somewhat disagreed” and four percent “strongly disagreed” that filings would increase in FY2011. Four percent did not know or had no opinion on the poll question.
 
ABI members and members of the public were welcome to submit their response to the statement: “Bankruptcy filings will rise in fiscal year 2011.”
 
ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls. 

 
 
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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

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. 

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.”

###

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.

 

Total Bankruptcy Filings Up 34 Percent Business Filings Up 61 Percent in Third Quarter

Contact: John Hartgen
                 703-739-0800
                 [email protected]

 

TOTAL BANKRUPTCY FILINGS UP 34 PERCENT, BUSINESS FILINGS UP 61 PERCENT IN THIRD QUARTER

December 15, 2008 Alexandria, Va.— The 292,291 total U.S. bankruptcies filed during the third quarter of 2008 (July 1 – Sept. 30) represented a 34 percent increase over the 218,909 cases filed over the same period in 2007, according to data released today by the Administrative Office of the U.S. Courts. Total filings for the first nine months of 2008 (Jan. 1 – Sept. 30) were up 35 percent to 841,496, compared to the 622,999 filings during the same period in 2007.

“The dramatic spike in both personal and business bankruptcies reflects an economy in distress, with worried consumers over-extended and unable to supply the spending typically needed to keep the national economy going,” said ABI Executive Director Samuel J. Gerdano.

The 29,960 business bankruptcies recorded during the first three quarters of 2008 (Jan. 1 – Sept. 30) have eclipsed the full year 2007 (Jan. 1- Dec. 31) business filing total of 28,137. Business filings represented the sharpest increase during the three-month period ending Sept. 30, 2008, with 11,504 filings, up 61 percent over the 7,167 business filings in 2007. Chapter 11 business filings spiked to 2,485 during the third quarter of 2008, an increase of 76 percent over the 1,410 filings during the similar period in 2007. Chapter 7 business filings also increased to 7,927 during the three-month period ending Sept. 30, 2008, representing a 65 percent increase over the 4,816 filings during the similar period in 2007.

Consumer filings totaled 280,787 during the third quarter of 2008 (July 1-Sept. 30), representing a 33 percent increase over the 211,742 filed during the same period of 2007. Consumer chapter 7 filings during the 2008 third quarter totaled 187,227, an increase of 47 percent over the 2007 third quarter total of 127,192. Chapter 13 consumer filings also increased during the three-month period ending Sept. 30, 2008, with the 93,333 filings, representing an 11 percent increase over the 84,376 filings during the same period in 2007.

The 1,042,993 total filings for the 12-month period ending Sept. 30 were up more than 30 percent from the same period in 2007, which totaled 801,269. The bankruptcy filing rate per thousand U.S. residents totaled 3.38 for all chapters during the 12-month period ending Sept. 30, 2008, as 2.21 Americans per thousand filed for chapter 7 while 1.15 per thousand filed for chapter 13 bankruptcy, all increases from the similar period a year ago. Tennessee was the state with the highest per capita filing rate in the country, with 7.27 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 13 filings at 4.16. The state with the highest per capita filing rate for chapter 7 bankruptcy was Nevada at 4.30 per thousand for the 12-month period ended Sept. 30, 2008.

Nonbusiness filings for the 12-month period ending Sept. 30, 2008, totaled 1,004,342, an increase of 30 percent from the 775,344 total nonbusiness filings calculated over the same period in 2007. Business filings for the 12-month period ending Sept. 30, 2008, totaled 38,651, up 49 percent from the 25,925 bankruptcy petitions filed in the 12-month period ending Sept. 30, 2007.

The 679,982 total chapter 7 filings for the 12-month period ending Sept. 30, 2008, represent a 40 percent increase from the 484,162 filings from the same period in 2007. Chapter 11 filings also increased, rising 49 percent to 8,799 in 2008 from 5,888 in 2007. Total chapter 13 filings increased 14 percent to 353,828 in the 12-month period ending Sept. 30, 2008, from 310,802 in the same period last year. Chapter 12 filings, however, decreased 8 percent from 361 in 2007 to 332.

BUSINESS FILINGS for the 3-month period ending Sept. 30, 2008, totaled 11,504, up 61 percent from the 7,167 bankruptcy business cases filed in the same period in 2007. NON-BUSINESS FILINGS for the 3-month period ending Sept. 30, 2008, increased 33 percent from 211,742 in 2007 to 280,787 in 2008.

The chapter* breakdown of BUSINESS filings for the 3-month period ending Sept. 30, 2008, is: 7,927 chapter 7s, 2,485 chapter 11s, 89 chapter 12s and 983 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending Sept. 30, 2008, is: 187,227 chapter 7s, 227 chapter 11s and 93,333 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 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute

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

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

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

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

 

October Consumer Bankruptcy Filings Climb to Highest Monthly Level Since New Law Took Effect

Contact: John Hartgen
             703-739-0800
             [email protected]

 

OCTOBER CONSUMER BANKRUPTCY FILINGS CLIMB TO HIGHEST MONTHLY LEVEL SINCE NEW LAW TOOK EFFECT

November 5, 2007, Alexandria, Va. October consumer bankruptcy filings increased to 75,975, the highest monthly total since the new bankruptcy law took effect two years ago, according to the American Bankruptcy Institute (ABI). Data from the National Bankruptcy Research Center (NBKRC) also showed that the October consumer filings represented a 10.23 percent increase from the 68,926 filings in September. Chapter 13 filings constituted 39.47 percent of all consumer cases in October.  The percentage of chapter 13 filings may increase further if proposed home mortgage modification legislation passes Congress. Experts at a House hearing last week testified that 500,000 foreclosures could be averted by using bankruptcy to write down mortgages in the falling housing market.

'Chapter 13's could spike to record levels if Congress enacts pending legislation to allow homeowners to rewrite their mortgages by filing for bankruptcy,' ABI Executive Director Samuel J. Gerdano. 

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

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