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October Consumer Bankruptcy Filings Reach New Highs Up 28 Percent Over Last Year

Contact: Carolyn Kanon
             703-739-0800
             ckanon@abiworld.org

OCTOBER CONSUMER BANKRUPTCY FILINGS REACH NEW HIGHS, UP 28 PERCENT OVER LAST YEAR

 

November 4, 2009 Alexandria, Va. — The 135,913 consumer bankruptcy filings in October represented a 27.9 percent increase over last October's monthly total of 106,266, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The October 2009 consumer filings represented an 8.9 percent increase from the September 2009 total of 124,790. Chapter 13 filings constituted 28.5 percent of all consumer cases in October, a slight increase from the September rate.

'The nearly 9 percent increase in consumer bankruptcy filings in October, together with a 7 percent jump reported in business cases, demonstrates the sustained stress on the U.S. economy,' said ABI Executive Director Samuel J. Gerdano. ABI forecasts that total bankruptcies this year will exceed 1.4 million, the highest number since 2005.

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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 12,300 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit http://www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

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

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

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

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

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

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

 

Consumer Bankruptcy Filings in First Half of 2008 Up 30 Percent from a Year Ago

Contact: John Hartgen
             703-739-0800
             jhartgen@abiworld.org

CONSUMER BANKRUPTCY FILINGS IN FIRST HALF OF 2008 UP 30 PERCENT FROM A YEAR AGO


 
July 2, 2008, Alexandria, Va.— U.S. consumer bankruptcy filings increased 30 percent nationwide during the first six months of 2008 (Jan. 1-June 30) 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 June consumer filing total of 82,770 was 20.7 percent more than the 68,559 consumer filings recorded in June 2007. While the June total represented an increase over the previous year, it was a 9.3 percent decrease from the May 2008 total of 91,214 consumer filings. Chapter 13 filings constituted 32.6 percent of all consumer cases in June, a slight increase from May. 
 
“The overall trend of rising bankruptcies reflects the growing financial strain of felt by U.S. households, burdened by high debt, rising mortgage costs and falling home values,” said 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 11,700 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 <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
             jhartgen@abiworld.org

 

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.

Total Bankruptcy Filings Up 33 Percent in Third Quarter

Contact: John Hartgen
              (703) 739-0800
             
jhartgen@abiworld.org

 

TOTAL BANKRUPTCY FILINGS UP 33 PERCENT IN THIRD QUARTER

November 25, 2009 Alexandria, Va.— The 388,485 total U.S. bankruptcies filed during the third quarter of 2009 (July 1 – Sept. 30) represented a 33 percent increase over the 292,291 cases filed over the same period in 2008, according to data released today by the Administrative Office of the U.S. Courts. Total filings for the first nine months of 2009 (Jan. 1 – Sept. 30) were up 35 percent to 1,100,035, compared to the 814,496 filings during the same period in 2008. Bankruptcies are at the highest level since the 2005 amendments to the Bankruptcy Code.

“The spike in bankruptcy filings for both consumers and businesses reflects the continuing effects of today’s weak economy,” said ABI Executive Director Samuel J. Gerdano. “With unemployment surpassing 10 percent and credit to businesses remaining tight, consumers and businesses are increasingly turning to the financial relief of bankruptcy.”

The 45,510 business bankruptcies recorded during the first three quarters of 2009 (Jan. 1 – Sept. 30) have eclipsed the full year 2008 (Jan. 1- Dec. 31) business filing total of 43,546. Business filings during the three-month period ending Sept. 30, 2009, totaled 15,177 filings, up 32 percent over the 11,504 business filings in 2008. Chapter 11 business filings rose to 3,060 during the third quarter of 2009, an increase of 23 percent over the 2,485 filings during the similar period in 2008. Chapter 7 business filings also increased to 10,798during the three-month period ending Sept. 30, 2009, representing a 36 percent spike over the 7,927 filings during the same period in 2008.

Consumer filings totaled 373,308 during the third quarter of 2009 (July 1-Sept. 30), representing a 33 percent increase over the 280,787 filed during the same period of 2008. Consumer chapter 7 filings during the 2009 third quarter totaled 265,721, an increase of 42 percent over the 2008 third quarter total of 187,227. Chapter 13 consumer filings also increased during the three-month period ending Sept. 30, 2009, with the 107,142filings, representing an 15 percent increase over the 93,333 filings during the same period in 2008.

The 1,402,816 total filings for the 12-month period ending Sept. 30, 2009, were up more than 34 percent from the same period in 2008, which totaled 1,042,993. The bankruptcy filing rate per thousand U.S. residents totaled 4.52 for all chapters during the 12-month period ending Sept. 30, 2009, as 3.19 Americans per thousand filed for chapter 7 while 1.28 per thousand filed for chapter 13 bankruptcy, all increases from the similar period a year ago. Nevada was the state with the highest per capita filing rate in the country, with 10.49 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 7.53. The state with the highest per capita filing rate for chapter 13 bankruptcy was Tennessee at 4.36 per thousand for the 12-month period ended Sept. 30, 2009.

Nonbusiness filings for the 12-month period ending Sept. 30, 2009, totaled 1,344,095, an increase of 34 percent from the 1,004,342 total nonbusiness filings calculated over the same period in 2008. Business filings for the 12-month period ending Sept. 30, 2009, totaled 58,721, up 52 percent from the 38,651 bankruptcy petitions filed in the 12-month period ending Sept. 30, 2008.

The 989, 227 total chapter 7 filings for the 12-month period ending Sept. 30, 2009, represent a 45 percent increase from the 679,982 filings from the same period in 2008. Chapter 11 filings also increased, rising 68 percent to 14,745 in 2009 from 8,799 in 2008. Total chapter 13 filings increased 13 percent to 398,210 in the 12-month period ending Sept. 30, 2009, from 353,828 in the same period last year. Chapter 12 filings also increased 47 percent from 332 in 2008 to 487.

BUSINESS FILINGS for the 3-month period ending Sept. 30, 2009, totaled 15,177, up 32 percent from the 11,504 bankruptcy business cases filed in the same period in 2008. NON-BUSINESS FILINGS for the 3-month period ending Sept. 30, 2009, increased 33 percent from 280,787 in 2008 to 373,308 in 2009.

The chapter* breakdown of BUSINESS filings for the 3-month period ending Sept. 30, 2009, is: 10,798 chapter 7s, 3,060 chapter 11s, 155 chapter 12s and 1,147 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending Sept. 30, 2009, is: 265,721 chapter 7s, 445 chapter 11s and 101,142 chapter 13s.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,400 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

 

Consumer Bankruptcy Filings Up 37 Percent in May

Contact: John Hartgen
             703-739-0800
             jhartgen@abiworld.org

CONSUMER BANKRUPTCY FILINGS UP 37 PERCENT IN MAY

June 2, 2009, Alexandria, Va.— U.S. consumer bankruptcy filings rose 37 percent nationwide in May from the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The overall May consumer filing total of 124,838 was roughly level from the April total of 125,618. Chapter 13 filings constituted 27 percent of all consumer cases in May, slightly above the April rate.
 
“As consumers continue to face increasing levels of unemployment and rising foreclosure rates, bankruptcy filings will continue to accelerate as families seek financial relief from the tough economic climate,” said ABI Executive Director Samuel J. Gerdano. “We predict more than 1.4 million new bankruptcies by year end.”

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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 12,000 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 Fall 15 Percent in April

Contact: John Hartgen
             703-739-0800
             jhartgen@abiworld.org

CONSUMER BANKRUPTCY FILINGS FALL 15 PERCENT IN APRIL

May 14, 2007, Alexandria, Va. U.S. consumer bankruptcy filings fell 15 percent nationwide in April from the previous month, said the American Bankruptcy Institute (ABI). Relying on data from the National Bankruptcy Research Center (NBKRC), overall consumer filings totaled 62,489 in April, a figure that was up 33.6 percent from April 2006. Chapter 13 filings constituted 37 percent of all consumer cases in April, down slightly from earlier this year.   

“Though bankruptcy filings are elevated from a year ago, overall levels are still at about one-third the rate experienced before Congress changed the laws,” said Samuel J. Gerdano, ABI Executive Director.

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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.

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

 

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

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

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

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

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

Total Bankruptcy Filings Increase Nearly 35 Percent over First Quarter 2008 Business Filings Jump over 64 Percent

Contact: John Hartgen
               (703) 739-0800
               jhartgen@abiworld.org

 

 

TOTAL BANKRUPTCY FILINGS INCREASE NEARLY 35 PERCENT OVER FIRST QUARTER 2008; BUSINESS FILINGS JUMP OVER 64 PERCENT

June 9, 2009, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first three months of 2009 increased 34.5 percent over the same period in 2008 nationwide, according to data released today by the Administrative Office of the U.S. Courts. As total filings reached 330,477 during the first calendar year quarter of 2009 (Jan. 1-March 31), the total surpassed the 245,695 new cases that were filed over the same period in 2008. The total filings in the 2009 first quarter also represent a 9.7 percent increase from the 301,317 bankruptcies filed during the fourth quarter of 2008 (Oct. 1 – Dec. 31).

“Consumers and businesses are increasingly seeking bankruptcy protection in order to shelter themselves from the financial storms brought on by the current economic climate,” said Samuel J. Gerdano, ABI Executive Director.  “As unemployment figures continue to rise and financing remains elusive, we expect filings to surge past 1.4 million cases by year-end.”

Business filings for the three-month period ending March 31, 2009 totaled 14,319, representing a 64.3 percent increase over the first quarter 2008 total of 8,713. The first quarter 2009 business filing total also represented an 11 percent increase over the fourth quarter 2008 total of 12,901.

Consumer filings increased 33.4 percent to 316,158 for the three-month period ending March 31, 2009, from the 2008 first quarter total of 236,982. They also represent an 9.6 percent increase from the fourth quarter of 2008, which recorded a total of 288,416 nonbusiness filings. The percentage of consumers filing for chapter 13 protection fell slightly from 35.6 percent during the first quarter of 2008 (January 1-March 31) to 29.2 percent over the same period in 2009. The number of consumers filing for chapter 7 protection increased to 70.8 percent during the first three months of 2009, the largest percentage of consumer chapter 7 filers since the implementation of BAPCPA in 2005.

The 12-month filing total of 1,202,503 for the period ending March 31, 2009, is an increase of 33.3 percent from the same period in 2008, which totaled 901,927 filings. Nonbusiness filings for the 12-month period ending March 31, 2009, totaled 1,153,412, up 32.4 percent from the 871,186 total nonbusiness filings in the 12-month period ending March 31, 2008. Business filings for the 12-month period ending March 31, 2009, totaled 49,091, up 59.7 percent from the 30,741 business bankruptcy petitions filed in the 12-month period ending March 31, 2008.

The 819,362 total chapter 7 filings for the 12-month period ending March 31, 2009, represent a 46.3 percent increase from the 560,015 filings from the same period in 2008. Total chapter 13 filings increased 10.9 percent to 370,875 in the 12-month period ending March 31, 2009 from 334,551 in the same period last year.   Total chapter 11 filings also increased, rising 69.1 percent to 11,785 in 2009 from 6,971 in 2008. Chapter 12 filings increased 7 percent to 367 in 2009 compared to 343 filings in 2008.

The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2009, is: 9,700 chapter 7s, 3,431 chapter 11s, 102 chapter 12s and 1,045 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2009, is: 223,760 chapter 7s, 248 chapter 11s and 92,150 chapter 13s.

States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending March 31, 2009:

   1. Tennessee

   2. Nevada

   3. Alabama

   4. Georgia

   5. Indiana

   6. Michigan

   7. Ohio

   8. Kentucky

   9. Arkansas

  10. Illinois

 

Districts with the Highest PercentageINCREASE in Total Filings for the 12-month period ending March 31, 2009 (compared to the identical period in 2008):

  1. Central District of California: 92.9%
  2. District of Delaware: 86.0%
  3. District of Arizona: 82.5%
  4. Southern District of California: 74.1%
  5. TIE- District of Nevada and Eastern District of California: 69.9%

Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending March 31, 2009 (compared to the identical period in 2008):

  1. District of the Northern Mariana Islands: 38.5%
  2. District of the Virgin Islands: 26.1%
  3. Middle District of Louisiana: 13.4%
  4. Southern District of Texas: 4.3%

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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 12,000 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.

 

Bankruptcy Filings Through First Three Quarters of 2007 Eclipse Last Years Totals

Contact: John Hartgen
             703-739-0800
             jhartgen@abiworld.org

 

BANKRUPTCY FILINGS THROUGH FIRST THREE QUARTERS OF 2007 ECLIPSE LAST YEAR’S TOTALS

November 19, 2007, Alexandria, Va. The 623,399 total U.S. bankruptcies filed during the first three quarters of 2007 (Jan. 1 – Sept. 30) represented a 40.16 percent increase over the 444,789 cases filed over the same period in 2006, according to data released today by the Administrative Office of the U.S. Courts. The totals for both consumer and business filings during the first three quarters of 2007 also eclipsed those reached for the full calendar year of 2006.

“Bankruptcies are up sharply from a year ago this period, reflecting a growing vulnerability in household economics,” said ABI Executive Director Samuel J. Gerdano.  “The continued stress on the housing market will likely fuel a continuation of this trend into 2008.”

Filings by individuals or households with consumer debt increased 40.15 percent to 603,139 for the nine-month period ending Sept. 30, 2007, from 430,364 filings during the same period in 2006. The overall percentage of consumers filing for chapter 13 protection fell slightly from 41.41 percent during the first three quarters of 2006 (Jan. 1-Sept. 30) to 38.87 percent over the same period in 2007. Conversely, the percentage of chapter 7 consumer filers increased to 61.06 percent during the first nine months of 2007 from the 58.50 percent recorded during the same period of 2006.

Business filings for the nine-month period ending Sept. 30, 2007, totaled 20,260, representing a 40.45 percent increase over the similar nine-month 2006 total of 14,425. Chapter 7 business liquidations totaled 13,290 in the first three quarters of 2007, a 57.60 percent increase over the 8,433 business chapter 7 filings during the same period in 2006. Chapter 11 business reorganizations also rose from 3,644 in the first three quarters of 2006 to 4,130 in the same period of 2007, a 13.34 percent increase.

The 801,269 total filings for the 12-month period ending Sept. 30 were down 28 percent from the same period in 2006, which totaled 1,112,542 filings, a figure that includes a surge in cases filed before the implementation date of a major change in the law in 2005. The bankruptcy filing rate per thousand U.S. residents totaled 2.62 for all chapters during the 12-month period ending Sept. 30, 2007, as 1.58 Americans per thousand filed for chapter 7 while 1.02 per thousand filed for chapter 13 bankruptcy. Tennessee was the state with the highest per capita filing rate in the country, with 6.19 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 13 filings at 3.86. The state with the highest per capita filing rate for chapter 7 bankruptcy was Indiana at 3.20 per thousand for the 12-month period ended Sept. 30, 2007.

Nonbusiness filings for the 12-month period ending Sept. 30, 2007, totaled 775,344, down 28.55 percent from the 1,085,209 total nonbusiness filings experienced over the same period in 2006. Business filings for the 12-month period ending Sept. 30, 2007, totaled 25,925, down 5.15 percent from the 27,333 bankruptcy petitions filed in the 12-month period ending Sept. 30, 2006.

The 484,162 total chapter 7 filings for the 12-month period ending Sept. 30, 2007, represent a 41.89 percent decrease from the 833,147 filings from the same period in 2006. Chapter 11 filings also declined, falling 1.92 percent to 5,888 in 2007 from 6,003 in 2006. Chapter 12 filings decreased as well, falling 4 percent from 376 in 2006 to 361 in 2007. However, total chapter 13 filings increased 13.87 percent to 310,802 in the 12-month period ending Sept. 30, 2007, from 272,937 in the same period last year.

BUSINESS FILINGS for the 3-month period ending Sept. 30, 2007, totaled 7,167, up 35.64 percent from the 5,284 bankruptcy business cases filed in the same period in 2006. NON-BUSINESS FILINGS for the 3-month period ending Sept. 30, 2007, increased 27.66 percent from 165,862 in 2006 to 211,742 in 2007.

The chapter* breakdown of BUSINESS filings for the 3-month period ending Sept. 30, 2007, is: 4,816 chapter 7s, 1,410 chapter 11s, 71 chapter 12s and 844 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending Sept. 30, 2007, is: 127,192 chapter 7s, 173 chapter 11s and 84,376 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.

Total U.S. Bankruptcies in First Half of 2010 Up 14 Percent over First Half of 2009

Contact: John Hartgen
             703-894-5935
             jhartgen@abiworld.org

TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2010 UP 14 PERCENT OVER FIRST HALF OF 2009

August 17, 2010, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first six months of 2010 increased 14 percent over the same six-month period in 2009, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 810,209 during the first half of the calendar year of 2010 (January 1-June 30), compared to 711,550 cases filed over the same period in 2009. The totals represent the highest number of filings for the first six months of a calendar year since 2005, when the Bankruptcy Code was amended.

“Bankruptcy continues to be the last resort for many Americans seeking financial relief from household debt, unemployment and the economic downturn,” said ABI Executive Director Samuel J. Gerdano. “The first half 2010 filings show that bankruptcies are on pace to surpass 1.6 million by year end.”

Business filings decreased 4 percent for the six-month period ending June 30, 2010, to 29,059 from the first-half 2009 total of 30,333. Chapter 11 business reorganizations registered the sharpest decrease, as the 6,152 filings during the first half of 2010 represented a 17 percent drop from the 7,396 total chapter 11 business filings during the first half of 2009. Chapter 7 business liquidations remained nearly unchanged, as there were 20,385 in the first half of 2010, a half percent increase from the 20,375 business chapter 7 filings during the same period in 2009.

Filings by individuals or households with consumer debt increased 15 percent to 781,150 for the six-month period ending June 30, 2010, from the 2009 first-half total of 681,217. Consumers filing for chapter 7 protection increased 17 percent to 571,417 during the first half of 2010 from 489,128 during the first six months of 2009. Consumer chapter 13 filings increased as well, rising 9 percent as 208,778 consumers filed for chapter 13 in the first half of 2010 from 191,458 during the first half of 2009.

The 422,061 total filings for the second calendar quarter 2010 (April 1-June 30) represented a 11 percent increase from the second quarter 2009 filing total of 381,073. Consumer filings increased 12 percent from 365,059 recorded in the second quarter of 2009 to 407,609 filings in the second quarter 2010. Business filings decreased 10 percent from 16,014 in the second quarter 2009 to 14,452 filings in the second quarter of 2010.

The 1,572,597 total filings for the 12-month period ending June 30, 2010, represented a 20 percent increase from the same period in 2009, which totaled 1,306,315. The bankruptcy filing rate per thousand U.S. residents totaled 5.05 for all chapters during the 12-month period ending June 30, 2010, as 3.64 Americans per thousand filed for chapter 7 while 1.36 per thousand filed for chapter 13 bankruptcy.

Nevada maintained its position as the state with as the state with the highest per capita filing rate in the country, with 11.74 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 8.71. The state with the highest per capita filing rate for chapter 13 bankruptcy was Alabama at 4.16 per thousand for the 12-month period ended June 30, 2010.

Nonbusiness filings for the 12-month period ending June 30, 2010, were up to 1,521,989, a 21 percent increase from the 1,251,294 total nonbusiness filings over the same period in 2009. Business filings for the 12-month period ending June 30, 2010, totaled 59,608, up 8 percent from the 55,021 bankruptcy petitions filed in the 12-month period ending June 30, 2009.

The 1,133,320 total chapter 7 filings for the 12-month period ending June 30, 2010, represent a 25 percent increase from the 907,603 filings from the same period in 2009. Total chapter 11 filings increased 2 percent to 14,272 in the 12-month period ending June 30, 2010 from 13,951 during the same period in 2009. Total chapter 13 filings also increased 10 percent to 424,242 in the 12-month period ending June 30, 2010, from 384,187 during the same period last year. Chapter 12 filings increased 56 percent from 422 in the 12-month period ending June 30, 2009 to 660 for the same period in 2010.

Chapter breakdowns of BUSINESS filings for the 3-month period ending June 30, 2010: 10,311 chapter 7s; 2,859 chapter 11s; 194 chapter 12s; and 1,071 chapter 13s.

Chapter breakdown of NON-BUSINESS filings for the 3-month period ending June 30, 2010: 299,369 chapter 7s; 511 chapter 11s; and 107,727 chapter 13s.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,600 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.

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

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

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

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

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

August Consumer Bankruptcy Filings Fall 8 Percent This Month

Contact: John Hartgen
             703-894-5935
             jhartgen@abiworld.org

AUGUST CONSUMER BANKRUPTCY FILINGS FALL 8 PERCENT THIS MONTH

 

September 1, 2010, Alexandria, Va. The 127,028 consumer bankruptcies filed in August represented a 8 percent decrease nationwide over the 137,698 filings recorded in July 2010, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). Though a decrease from the previous month, NBKRC’s data also showed that the August 2010 consumer filings represented a 6 percent increase from the 119,874 consumer filings recorded in August 2009. Chapter 13 filings constituted 29 percent of all consumer cases in August, a slight increase from July.

“While monthly filings are volatile, consumer bankruptcies are still the highest they have been since Congress overhauled the bankruptcy law in 2005,” said ABI Executive Director Samuel J. Gerdano. “Consumer filings remain on track to top 1.6 million filings in 2010.”

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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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