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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.

 

Total Bankruptcies Eclipse the 2 Million Mark in 2005 as Consumers File in Record Numbers Prior to Implementation of New Bankruptcy Law

Contact: John Hartgen

              Phone: 703-739-0800

              Email: jhartgen@abiworld.org

 

Total Bankruptcies Eclipse the 2 Million Mark in 2005 as Consumers File in Record Numbers Prior to Implementation of New Bankruptcy Law

March 24, 2006 Alexandria, Va. — Bankruptcy filings eclipsed the two million mark for the first time in the United States as 2,078,415 filings were reported in calendar year 2005, according to data from the Administrative Office of the U.S. Courts. The total in this 12-month period ending December 31, 2005, represents a record 30 percent increase compared with the 1,597,462 total filings for the same period in 2004.

Driven largely in response to the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), consumers provided 98 percent of the overall total filings, the highest concentration of consumer filings on record, as nonbusiness filings during the 12-month period ending December 31, 2005, increased to a record 2,039,214, which was a 31 percent increase from the total of 1,563,145 of the same period in 2004. Business filings also increased to 39,201 for the 12-month period ending December 31, 2005, representing a 14 percent increase from the total of 34,317 from same period in 2004. This is the highest total of business bankruptcies in a calendar year since 2001’s total of 40,099.

“It is ironic that, at least in the short term, a law Congress hoped would reduce bankruptcies instead caused the largest upward spike in history,” said Samuel J. Gerdano, ABI Executive Director.  “Bankruptcies have in fact fallen dramatically so far in 2006 under the new, more-restrictive law,” he added.

The record high of 667,431 bankruptcies recorded during the 4th calendar quarter of 2005 (October 1-December 31, 2005), is representative of the many debtors who rushed to file prior to the Oct. 17 implementation date of BAPCPA. October 2005 filings alone totaled 630,497, representing 95 percent of the filings for the three-month period and 30 percent of the 12-month period ending December 31, 2005. Nonbusiness filings in October 2005 reached 619,588, which represented 30 percent of the nonbusiness filings for the 12- month period ending December 31, 2005, and 95 percent of the 654,633 total nonbusiness filings for the 4th quarter of 2005. The 10,909 October business filings were representative of 28 percent of the 12-month period ending December 31, 2005 business filings and 85 percent of the 12,798 business filings for the 4th quarter 2005.

Largely as a result of the BAPCPA, dramatic decreases in filings were seen during the months of November and December 2005 as the combined filings of 36,934 for those two months represented just 1.78 percent of the total 12-month period ending December 31, and 6 percent for the 4th quarter 2005. November’s total filings dropped to 14,324, which represented less than one percent (0.69%) of the total for the 12-month period ending December 2005 and 2 percent of the 4th quarter total. The total of 13,643 nonbusiness filings in November was representative of less than one percent of the total nonconsumer filings (0.67%) for the 12-month period ending December 31, 2005 and just 2 percent of the 4th calendar quarter nonbusiness filings. Business filings experienced a similar decline as the 681 filings in November represented less than 2 percent (1.74%) for CY2005 and 5 percent of the 2005 4th quarter’s total of 12,798. By comparison, 2004 totals for the month of November were 122,796 total filings, 2,643 business filings and 120,153 nonbusiness filings, each representative of nearly 8 percent of the 12-month total for their respective categories.

Total filings increased in December 2005 to 22,610, which represented a 63 percent increase over November total filings, but just over 1 percent of the 12-month period ending December 31, 2005 total (1.09%) and just over 3 percent (3.39%).for the 4th quarter 2005. December nonbusiness filings reached 21,402, representing just over one percent (1.05%) of the total nonbusiness filings for the 12-month period ending December 31, 2005, and only 3 percent of the 4th quarter 2005 nonbusiness filings. December business filings increased as well to 1,208, but only comprised 3 percent of the total business filings for the 12-month period and represented just over 9 percent of the 4th quarter total business filings. By comparison, 2004 totals for the month of December were 118,193 total filings, 2,493 business filings and 115,700 nonbusiness filings. Each was representative of just over seven percent of the 12-month total for their respective categories.

However, the 667,431 filings in the 4th quarter of 2005 (October 1-December 31, 2005) represent an 80 percent increase in comparison to the 371,668 filings for the same quarter of 2004 (October 1-December 31, 2004) and a 23 percent increase from the previous record total 542,002 from the 3rd quarter of 2005 (July 1- September 30, 2005).

Of the total number of bankruptcy filings in the 12-month period ending December 31, 2005, there were 1,659,017 chapter 7 filings, a 46 percent increase over the 1,137,958 chapter 7 filings for the same period in 2004. Chapter 7 filings also increased 33 percent from the 2005 third quarter from 429,299 to 570,355 in the 2005 fourth quarter.

The next-largest group of filings in the 12-month period ending December 31, 2005, was chapter 13 at 412,130, a 9 percent decrease from the 449,129 filings in the 12-month period ending December 31, 2004. CY2005 chapter 12 filings totaled 380, a 252 percent increase from the 108 filings in the 12-month period ending December 31, 2004. Reflecting the strong economy and low interest rates, chapter 11 filings fell from 10,132 in CY2004 to 6,800 in the 12-month period ending December 31, 2005, a 33 percent decrease.

BUSINESS FILINGS for the 3-month period ending December 31, 2005, totaled 12,798, a 64.54 percent increase from the 7,778 bankruptcy business cases filed in the same period in 2004. NONBUSINESS FILINGS for the 3-month period ending September 30, 2005, totaled 654,633, an 80 percent increase from the 363,890 total in the same quarter in 2004.

The chapter* breakdown of BUSINESS filings for the 3-month period ending December 31, 2005, is: 9,701 chapter 7s, 1,692 chapter 11s, 87 chapter 12s and 1,308 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the 3-month period ending December 31, 2005, is 560,654 chapter 7s, 263 chapter 11s and 93,714 chapter 13s.

Districts with the Highest Percentage INCREASE in Total Filings for the 12-month period ending December 31, 2005 (compared to the identical period in 2004):

  1. District of Virgin Islands: 68.42%
  2. Northern District of Ohio: 57.47%
  3. Southern District of West Virginia: 57.02%
  4. District of North Dakota: 54.68%
  5. District of Vermont: 54.42%

Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending December 31, 2005 (compared to the identical period in 2004):

  1. Southern District of Georgia: 9.79%
  2. Middle District of Georgia: 6.67%
  3. District of Puerto Rico: 0.82%
  4. District of South Carolina: 0.47% (Increase)
  5. Middle District of Tennessee: 4.19% (Increase)

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

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,000 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.

 

First Quarter Bankruptcy Filings Fall to Lowest Levels Since 1985

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

FIRST QUARTER BANKRUPTCY FILINGS FALL TO LOWEST LEVELS SINCE 1985

May 26, 2006, Alexandria, Va. The total number of U.S. bankruptcies filed during the first three months of 2006 were the lowest on record in more than 20 years as filings fell to 116,771, according to data released today by the Administrative Office of the U.S. Courts. The total filings for the first calendar year quarter of 2006 (January 1-March 31, 2006) have not been experienced since the 1985 fourth calendar year quarter (October 1-December 31, 1985), when bankruptcy filings totaled 114,021. The 2006 first quarter calendar year filings also represent a 82.5 percent drop in filings from the previous quarter (October 1-December 31, 2005) when 667,431 new cases were filed. It is also represents a 70.89 percent drop compared to the 401,149 total filings for the same three-month period ending March 31, 2005.

A new bankruptcy law went into effect on October 17, 2005. The new law requires that consumers first go through credit counseling before being eligible for bankruptcy. The new law also reduces the scope of bankruptcy relief.

“Congress hoped the new law would reduce the number of new consumer bankruptcies and the latest figures reflect that intention, though there are still many families under financial stress,” said Samuel J. Gerdano, ABI Executive Director. “We haven’t seen numbers this low since the mid-1980’s, when a gallon of gasoline was $1.20.”

Consumer filings represented the largest drop-off as they decreased 82.79 percent to 112, 685 for the three-month period ending March 31, 2006 from 654,633 the previous three-month period ending December 31, 2005. They also represent a 71.33 percent decrease from the same period in 2005, which had a total of 393,086 nonbusiness filings.

Business filings for the three-month period ending March 31, 2006 also experienced significant decreases as the total of 4,086 filings were down 68.02 percent from the 2005 fourth quarter total of 12,798 and 49.32 percent from the 8,063 business cases filed in the same quarterly period of 2005.

However, total filings increased for each month of the three-month period ending March 31, 2006, as nearly half of the total filings (44.26 percent) occurred in the month of March with 51,683 filings. January 2006 totaled 28,368 filings, while 36,720 total filings were recorded for February 2006. The steady increase was in stark contrast to the previous quarter’s steep monthly drop due to the October 17, 2005, implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Filings fell from a high of 630,468 in October 2005 to 14,480 for November 2005 and 22,927 for December 2005.

The total filings for the 12-month period ending March 31, 2006 were sustained by the surge of debtors filing for bankruptcy before the October 2005 implementation of BAPCPA. Total filings rose 12.81 percent to 1,794,795 compared to 1,590,975 bankruptcy cases filed in the 12-month period ending March 2005. Prior to the March 2006 12-month reporting period, bankruptcy filings rose 30 percent in the 12-month period ending December 31, 2005, which was also attributable to the rush prior to BAPCPA’s implementation.

Nonbusiness filings for the 12-month period ending March 31, 2006, totaled 1,759,503, up 12.86 percent from the 1,559,023 total nonbusiness filings in the 12-month period ending March 31, 2005. Business filings for the 12-month period ending March 31, 2006, totaled 35,292, up 10.45 percent from the 31,952 bankruptcy petitions filed in the 12-month period ending March 31, 2005.

Chapter 7 filings rose to 1,432,074 for the 12-month period ending March 31, 2006, representing a 25.43 percent increase from the 1,141,715 filings from the same period in 2005. Chapter 13 filings fell 19.48 percent, to 355,756 in the 12-month period ending March 31, 2006 from 441,838 in the same period last year. Chapter 11 filings also declined, falling 8.69 percent to 6,497 in 2006 from 7,115 in 2005. Chapter 12 filings rose 93.65 percent from 189 in 2005 to 366 in 2006.

BUSINESS FILINGS for the 3-month period ending March 31, 2006, totaled 4,086, down 49.32 percent from the 8,063 bankruptcy business cases filed in the same period in 2005. NON-BUSINESS FILINGS for the 3-month period ending March 31, 2006, decreased 71.33 percent from 393,086 in 2005 to 112,685 in 2006.

The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2006, is: 2,147 chapter 7s, 1,291 chapter 11s, 84 chapter 12s and 540 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2006, is: 63,250 chapter 7s, 121 chapter 11s and 49,314 chapter 13s.

Districts with the Highest Percentage INCREASE in Total Filings for the 12-month period ending March 31, 2006 (compared to the identical period in 2005):

  1. District of Vermont: 39.76%
  2. Northern District of Indiana: 35.86%
  3. District of Alaska: 35.10%       
  4. Northern District of Ohio: 33.76
  5. Western District of Oklahoma: 33.37%

Districts with the Highest Percentage DECREASE in Total Filings for the 12-month period ending March 31, 2006 (compared to the identical period in 2005):

  1. Southern District of Georgia: 19.32%
  2. Middle District of Georgia: 17.14%
  3. Southern District of Alabama: 15.02% 
  4. District of South Carolina: 14.93%       
  5. District of Utah: 12.05%

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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.

 

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

###

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

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

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

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

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

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

 

Bankruptcy Filings During First Three Quarters of 2006 Drop Off Nearly One Million from Previous Year

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

BANKRUPTCY FILINGS DURING FIRST THREE QUARTERS OF 2006 DROP OFF NEARLY ONE MILLION FROM PREVIOUS YEAR

December 5, 2006, Alexandria, Va.— The total number of U.S. bankruptcies filed during the first three quarters of 2006 (Jan. 1 – Sept. 30, 2006) fell to 443,750 from 1,410,484 for the same period in 2005, according to data released today by the Administrative Office of the U.S. Courts. The combined total of the first three quarters of 2006 (Jan. 1- Sept. 30) represent the lowest number of calendar filings for the first nine months of a year since the first three quarters of 1987, when bankruptcy filings totaled 432,821 during a similar calendar period. The filings for the first three calendar quarters of 2006 also represent a 68.54 percent drop in filings from the previous year’s three quarter filings (Jan. 1-Sept. 30, 2005), when 1,410,484 bankruptcies were filed.

“On the eve of a Senate oversight hearing on the new bankruptcy law, today’s numbers confirm that we are seeing filing levels not present since the 1980’s,” said Samuel J. Gerdano, ABI Executive Director. “Congress clearly wanted to reduce filings, but only time will tell if the 2006 trend is sustainable,” he concluded.

The 2006 third quarter (July 1-Sept. 30, 2006) filing total of 171,146 also represents a 68.42 percent drop compared with the 542,002 total filings for the same three-month period ending Sept. 30, 2005. The 1,112,542 total filings during the 12-month period ending Sept. 30, 2006, represent the lowest number of filings in a 12-month period since the 12-month period ending Sept. 30, 1996, when there were 1,111,964 filings. Total filings decreased from the 1,782,643 filings reported for the 12-month period ending June 30, 2005.

Total consumer filings for the nine-month period from Jan. 1 – Sept. 30, 2006, were 429,522, representing a 68.97 percent decrease from the same period in 2005, in which consumer filings totaled 1,384,209. The 14,228 business filings from Jan. 1 – Sept. 30, 2006, represented a 45.85 percent decrease from the same period the previous year, in which 26,275 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 nine months of 2006 shifted considerably from the first nine months of 2005. Chapter 13 filings represented 41.39 percent of all consumer filings in the nine-month period ending Sept. 30, up from 22.79 percent during the same period of 2005. Conversely, the percentage of consumer chapter 7 filings fell to 58.52 percent of total consumer filings in the nine-month period ending Sept. 30, 2006, from 77.16   percent during the first three calendar quarters of 2005.

Nonbusiness filings for the 12-month period ending Sept. 30, 2006, fell 37.9 percent to 1,085,209 from the 1,748,421 total nonbusiness filings in the 12-month period ending Sept. 30, 2005. The 27,333 total business filings for the 12-month period ending Sept. 30, 2006, represented a 20.13 percent decrease from the 34,222 bankruptcy petitions filed in the 12-month period ending Sept. 30, 2005.

Total chapter 7 filings fell 38.11 percent to 833,147 in the 12-month period ending Sept. 30, 2006, from 1,346,201 in the same period last year. Chapter 13 filings fell 36.43 percent to 272,937 in the 12-month period ending Sept. 30, 2006, from 429,316 in the same period last year. Chapter 11 filings also declined, falling 9.55 percent to 6,003 in the 12-month period ending Sept. 30, 2006, from 6,637 in 2005. Conversely, chapter 12 filings rose slightly from 364 in the 12-month period ending Oct. 31, 2005, to 376 in 2006.

BUSINESS FILINGS for the three-month period ending Sept. 30, 2006, totaled 5,284, down 44.24 percent from the 9,476 bankruptcy business cases filed in the same quarter in 2005. NONBUSINESS FILINGS for the three-month period ending Sept. 30, 2006, decreased 68.85 percent from 532,526 in the same period in 2005 to 165,862.

The chapter* breakdown of BUSINESS filings for the three-month period ending Sept. 30, 2006, is: 3,249 chapter 7s, 1,192 chapter 11s, 97 chapter 12s and 716 chapter 13s.

The chapter breakdown of NONBUSINESS filings for the three-month period ending Sept. 30, 2006, is: 96,442 chapter 7s, 140 chapter 11s and 69,280 chapter 13s.

NOTE: ALL CIRCUIT DISTRICTS EXPERIENCED FILING DECREASES FOR THE 12 MONTH PERIOD ENDING SEPT. 30, 2006 WHEN COMPARED TO THE IDENTICAL PERIOD IN 2005.

Districts with the LOWEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending Sept. 30, 2006 (compared to the identical period in 2005):

  1. District of the Virgin Islands: 8.51%
  2. District of Vermont: 23.10%
  3. Northern District of Indiana: 26.32%   
  4. Eastern District of Michigan: 28.07%
  5. Western District of Pennsylvania: 29.64%

Districts with the HIGHEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending Sept. 30, 2006 (compared to the identical period in 2005):

  1. Eastern District of Louisiana: 51.78%
  2. District of Utah: 51.41%
  3. District of Arizona: 50.92%      
  4. District of New Mexico: 49.10%       
  5. Northern District of West Virginia: 45.76%

###

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.

 

2006 Bankruptcies Fall to Lowest Levels Since 1980s

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

 

2006 BANKRUPTCIES FALL TO LOWEST LEVELS SINCE 1980s

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

###

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

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

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

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

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

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

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