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January Consumer Bankruptcy Filings Increase 30 Percent over Previous Year

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

 

JANUARY CONSUMER BANKRUPTCY FILINGS INCREASE 30 PERCENT OVER PREVIOUS YEAR

February 4, 2008, Alexandria, Va. U.S. consumer bankruptcy filings increased more than 30 percent nationwide in January from the same period a year ago, according to the American Bankruptcy Institute (ABI) relying on data from the National Bankruptcy Research Center (NBKRC). While the consumer filings for January increased from the previous year, the data showed that the overall January consumer filing totals were flat from December. Chapter 13 filings constituted 40.05 percent of all consumer cases in January, a slight increase over December. 

“With over one million more subprime adjustable-rate mortgages due to reset during 2008, the payment shock for many households could lead to higher bankruptcies this year,” said ABI Executive Director Samuel J. Gerdano.

The overall consumer filing total for the 2007 calendar year (Jan. 1 – Dec. 31, 2007) reached 801,840, nearly a 40 percent increase from the 573,203 filings recorded during the similar period in 2006.

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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 11,700 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.

 

Consumer Bankruptcy Filings Increase Nearly 12 Percent in May

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

CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 12 PERCENT IN MAY

June 6, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased 11.5 percent nationwide in May from the previous month, said the American Bankruptcy Institute (ABI). Relying on data from the National Bankruptcy Research Center (NBKRC), overall consumer filings totaled 69,684 in May, up from 62,489 filings in April. The figure was also up 51.3 percent from May 2006. Chapter 13 filings constituted 36.5 percent of all consumer cases in May, down slightly from earlier this year.   

“Personal bankruptcies continue to be more volatile this year than in 2006,” said Samuel J. Gerdano, ABI Executive Director. “Overall, consumer bankruptcies are higher than last year, but still well below the levels of 2004-05.”

###

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

 

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

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

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

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

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

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

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.   

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.”

###

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 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.

Consumer Bankruptcy Filings Up Nearly 37 Percent Through First Half of 2009

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

CONSUMER BANKRUPTCY FILINGS UP NEARLY 37 PERCENT THROUGH FIRST HALF OF 2009

 

July 2, 2009, Alexandria, Va.— U.S. consumer bankruptcy filings totaled 675,351 nationwide during the first six months of 2009 (Jan. 1-June 30), a 36.5 percent increase over the 494,610 total consumer filings during the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The overall June consumer filing total of 116,365 was 40.6 percent more than the 82,770 consumer filings recorded in June 2008. While the June total represented an increase over the previous year, it was a 6.8 percent decrease from the May 2009 total of 124,838 consumer filings. Chapter 13 filings constituted 27.7 percent of all consumer cases in June, a slight increase from May.
 
“As unemployment, foreclosures rates and health care costs continue to rise, more consumers are turning to bankruptcy as a last financial resort,” said ABI Executive Director Samuel J. Gerdano. “We expect that there will be more than 1.4 million new bankruptcy filings by year end.”

###

 

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

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

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

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

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

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

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

Total U.S. Bankruptcies Up 36 Percent in First Half of 2009 Chapter 11 Business Filings Increase 113 Percent

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

TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2009 UP 36 PERCENT OVER FIRST HALF OF 2008; CHAPTER 11 BUSINESS FILINGS INCREASE 113 PERCENT

 

August 13, 2009, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first six months of 2009 increased 36 percent over the same six month period in 2008, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 711,550 during the first half of the calendar year of 2009 (January 1-June 30), compared to 522,205 cases filed over the same period in 2008.

“The increase in filings through the first half of this year is a product of continued financial stresses weighing on both consumers and businesses,” said ABI Executive Director Samuel J. Gerdano. “In this challenging economic environment, we expect bankruptcies to surge past 1.4 million by year end.”

Business filings for the six-month period ending June 30, 2009, totaled 30,333, representing a 64 percent increase over the first-half 2008 total of 18,456. Chapter 11 business reorganizations increased 113 percent to 7,396 during the first half of 2009 from 3,470 in the same period of 2008. Chapter 7 business liquidations increased to 20,375 in the first half of 2009, a 57 percent increase over the 13,002 business chapter 7 filings during the same period in 2008.

Filings by individuals or households with consumer debt increased 35 percent to 681,217 for the six-month period ending June 30, 2009, from the 2008 first-half total of 503,749. The overall percentage of consumers filing for chapter 13 protection fell slightly from 34 percent during the first half of 2008 (January 1-June 30) to 28 percent over the same period in 2009. Conversely, the first-half 2009 percentage of chapter 7 consumer filers increased to 72 percent from the 66 percent recorded in the first half of 2008.

The 381,073 total filings for the second calendar quarter 2009 (April 1-June 30) represented a 38 percent increase from the second quarter 2008 filing total of 276,510. Business filings in the second quarter of 2009 increased 64 percent to 16,014 over the 9,743 business filings in the second quarter 2008. The second quarter 2009 business filings were the highest total since the second quarter of 1993 when business filings reached 16,424. Consumer filings increased 37 percent from 266,767 recorded in the second quarter of 2008 to 365,059 filings in the second quarter 2009.

The 1,306,315 total filings for the 12-month period ending June 30, 2009, represented a 35 percent increase from the same period in 2008, which totaled 967,831. The bankruptcy filing rate per thousand U.S. residents totaled 4.22 for all chapters during the 12-month period ending June 30, 2009, as 2.93 Americans per thousand filed for chapter 7 while 1.24 per thousand filed for chapter 13 bankruptcy.

Nevada was the state with the highest per capita filing rate in the country with 9.33 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 6.67. The state with the highest per capita filing rate for chapter 13 bankruptcy was Tennessee at 4.35 per thousand for the 12-month period ended June 30, 2009.

Nonbusiness filings for the 12-month period ending June 30, 2009, were up to 1,251,294, a 34 percent increase from the 934,009 total nonbusiness filings over the same period in 2008. Business filings for the 12-month period ending June 30, 2009, totaled 55,021, up 63 percent from the 33,822 bankruptcy petitions filed in the 12-month period ending June 30, 2008.

The 907,603 total chapter 7 filings for the 12-month period ending June 30, 2009, represent a 47 percent increase from the 615,748 filings from the same period in 2008. Total chapter 11 filings increased 91 percent to 13,951 in the 12-month period ending June 30, 2009 from 7,293 during the same period in 2008. Total chapter 13 filings also increased 12 percent to 384,187 in the 12-month period ending June 30, 2009, from 344,421 during the same period last year. Chapter 12 filings increased 34 percent from 314 in the 12-month period ending June 30, 2008 to 422 in 2009.

Chapter breakdowns of BUSINESS filings for the 3-month period ending June 30, 2009: 10,675 chapter 7s; 3,965 chapter 11s; 139 chapter 12s; and 1,175 chapter 13s.

Chapter breakdown of NON-BUSINESS filings for the 3-month period ending June 30, 2009: 265,368 chapter 7s; 383 chapter 11s; and 99,308 chapter 13s.

###

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

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

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

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

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

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

 

Total Bankruptcy Filings Increase Nearly 27 Percent Over First Quarter 2007

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


TOTAL BANKRUPTCY FILINGS INCREASE NEARLY 27 PERCENT OVER FIRST QUARTER 2007

June 3, 2008, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first three months of 2008 increased 26.9 percent over the same period in 2007 in all bankruptcy court districts, according to data released today by the Administrative Office of the U.S. Courts. As total filings reached 245,695 during the first calendar year quarter of 2008 (Jan. 1-March 31), the total surpassed the 193,641 new cases that were filed over the same period in 2007. The total filings in the 2008 first quarter also represent an 8.5 percent increase from the 226,413 bankruptcies filed during the fourth quarter of 2007 (Oct. 1 – Dec. 31).
 
“This ninth consecutive quarterly increase in filings since Congress attempted to restrict access to bankruptcy relief demonstrates again the influence of rising household debt,” said Samuel J. Gerdano, ABI Executive Director.  “We expect filings to surge past 1 million cases by year-end.”
 
The first quarter 2008 filing total represents a 110 percent increase from the 116,771 total filings recorded during the first calendar quarter of 2006, the first full quarter following the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).
 
Consumer filings increased 26.5 percent to 236,982 for the three-month period ending March 31, 2008, from the 2007 first quarter total of 187,361. They also represent an 8.5 percent increase from the fourth quarter of 2007, which recorded a total of 218,428 nonbusiness filings. The percentage of consumers filing for chapter 13 protection fell slightly from 39.3 percent during the first quarter of 2007 (January 1-March 31) to 35.6 percent over the same period in 2008. The number of consumers filing for chapter 7 protection increased to 64.4 percent during the first three months of 2008, the largest percentage of consumer chapter 7 filers since the implementation of BAPCPA.
 
Business filings for the three-month period ending March 31, 2008 totaled 8,713, representing a 38.7 percent increase over the first quarter 2007 total of 6,280. The first quarter 2008 business filing total also represented a 9.1 percent increase over the fourth quarter 2007 total of 7,985.
 
The 12-month filing total of 901,927 for the period ending March 31 is an increase of 29.7 percent from the same period in 2007, which totaled 695,575 filings. Nonbusiness filings for the 12-month period ending March 31, 2008, totaled 871,186, up 29.3 percent from the 673,615 total nonbusiness filings in the 12-month period ending March 31, 2007. Business filings for the 12-month period ending March 31, 2008, totaled 30,741, up 40 percent from the 21,960 business bankruptcy petitions filed in the 12-month period ending March 31, 2007.
The 560,015 total chapter 7 filings for the 12-month period ending March 31, 2008, represent a 35.5 percent increase from the 413,294 filings from the same period in 2007. Chapter 13 filings increased 20.9 percent to 334,551 in the 12-month period ending March 31, 2008 from 276,649 in the same period last year. Chapter 11 filings also increased, rising 34.1 percent to 6,971 in 2008 from 5,199 in 2007. Chapter 12 filings decreased 8.5 percent from 372 in 2007 to 343 in 2008.

BUSINESS FILINGS for the 3-month period ending March 31, 2008, totaled 8,713, up 38.7 percent from the 6,280 bankruptcy business cases filed in the same period in 2007. NON-BUSINESS FILINGS for the 3-month period ending March 31, 2008, increased 26.5 percent from 187,361 in 2007 to 236,982 in 2008.
 
The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2008, is: 5,959 chapter 7s, 1,182 chapter 11s, 81 chapter 12s and 858 chapter 13s.
 
The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2008, is: 152,543 chapter 7s, 200 chapter 11s and 84,239 chapter 13s.
 
Districts with the Highest Percentage INCREASE in Total Filings for the 12-month period ending March 31, 2008 (compared to the identical period in 2007):
 
   1. Eastern District of California: 83.2%
   2. District of Nevada: 82.1%
   3. Central District of California: 79.0%
   4. Southern District of California: 68.3%
 
Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending March 31, 2008 (compared to the identical period in 2007):
 
   1. District of the Northern Mariana Islands: 38.1%
   2. District of the Virgin Islands: 4.2%
   3. Northern District of New York: 2.2%
   4. District of Guam: 0.8%

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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 11,700 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.
*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 29 Percent Over Previous Year Set Post-BAPCPA Record for Single Month

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

AUGUST CONSUMER BANKRUPTCY FILINGS UP 29 PERCENT OVER PREVIOUS YEAR; SET POST-BAPCPA RECORD FOR SINGLE MONTH

 

September 3, 2008, Alexandria, Va. U.S. consumer bankruptcy filings increased 29.2 percent nationwide in August from the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The overall August consumer filing total of 96,413 also set a single month high since the October 2005 effective date of the new bankruptcy law. Chapter 13 filings constituted 33.2 percent of all consumer cases in August, a slight increase from July. 

“The latest data reflect the growing trend of U.S. consumers to seek bankruptcy as a way out of financial problems,” said ABI Executive Director Samuel J. Gerdano.   “We expect bankruptcies to exceed 1.1 million by year end.”

###

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 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.

 

Consumer Bankruptcy Filings Increase 9 Percent in 2010

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

CONSUMER BANKRUPTCY FILINGS INCREASE 9 PERCENT IN 2010


 
January 3, 2011, Alexandria, Va.— U.S. consumer bankruptcies increased 9 percent nationwide in 2010 from the previous year, 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 2010 calendar year (Jan. 1 – Dec. 31, 2010) reached 1,530,078 compared to the 1,407,788 total consumer filings recorded during 2009. Annual consumer filings have increased each year since the Bankruptcy Abuse Prevention and Consumer Prevention Act was enacted in 2005.
 
“The steady climb of consumer filings notwithstanding the 2005 bankruptcy law restrictions demonstrate that families continue to turn to bankruptcy as a result of high debt burdens and stagnant income growth,” said ABI Executive Director Samuel J. Gerdano. “We expect that consumer filings will continue to rise in 2011.”
 
NBKRC’s data also showed that the 118,146 consumer filings recorded in December 2010 represented a 4 percent increase from the 113,274 filings in December 2009. The December 2010 consumer filings also represented a 3 percent increase from the November 2010 total of 114,587. Chapter 13 filings constituted 30 percent of all consumer cases in December, a slight increase from November.

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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.   

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