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,
“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.”
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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.
Bankruptcy Filings During First Half of 2006 Fall to Lowest Levels Since 1986
Contact:
(703) 739-0800
[email protected]
BANKRUPTCY FILINGS DURING FIRST HALF OF 2006 FALL TO LOWEST LEVELS SINCE 1986
August 28,
2006,
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):
- District of Vermont:
11.86%
- Northern District of Indiana:
10.63%
- District of Alaska:
8.71%
- District of the
- 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):
- Eastern District of Louisiana:
33.96%
- District of Utah:
31.92%
- Southern District of
Georgia: 29.88%
- Southern District of
Alabama: 29.67%
- Middle District
of
###
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
 | |
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Contact: Carolyn Kanon CONSUMER BANKRUPTCY FILINGS UP 14 PERCENT THROUGH FIRST HALF OF 2010
July 2, 2010 Alexandria, Va. — U.S. consumer bankruptcy filings totaled 770,117 nationwide during the first six months of 2010 (Jan. 1-June 30), a 14 percent increase over the 675,351 total consumer filings during the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The consumer filings for the first half of 2010 represent the highest total since 2005, when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act to try and stem the tide of filings, although the number of monthly consumer filings has been steadily decreasing since March. 'Years of rising consumer debt and low savings rates, combined with the housing and unemployment crises, are causing bankruptcy levels not seen since the 2005 amendments to the Bankruptcy Code,' said ABI Executive Director Samuel J. Gerdano. 'We expect that there will be more than 1.6 million new bankruptcy filings by year end.' The overall June consumer filing total of 126,270 was 8.5 percent more than the 116,365 consumer filings recorded in June 2009. While the June total represented an increase over the previous year, it was a 7.8 percent decrease from the May 2010 total of 136,142 consumer filings. Chapter 13 filings constituted 27 percent of all consumer cases in June, a slight increase from May. ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,600 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit http://www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html. NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com. *Definitions from Bankruptcy Overview: Issues, Law and Policy, by the American Bankruptcy Institute. Chapter 7 of the Bankruptcy Code is available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor's available non-exempt property. Unsecured debts not reaffirmed are discharged, providing a fresh financial start. Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual's finances through a court-approved reorganization plan. Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming. Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor's future earnings under a plan through which unsecured creditors are paid in whole or in part.
| |
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.
###
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.
###
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,
'Chapter 13's could spike to
record levels if Congress enacts pending legislation to allow homeowners
to rewrite their mortgages by filing for bankruptcy,'
###
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,
“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.
###
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,
“Personal bankruptcies
continue to be more volatile this year than in 2006,” said Samuel
J. Gerdano,
###
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.