Help Center

Press Release

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.

###

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.

Consumer Bankruptcy Filings Increase Nearly 12 Percent in May

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

CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 12 PERCENT IN MAY

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

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

###

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

 

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

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

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

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

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

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

Bankruptcy Filings Increase 66 Percent over First Quarter 2006

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

BANKRUPTCY FILINGS INCREASE 66 PERCENT OVER FIRST QUARTER 2006

June 27, 2007, Alexandria, Va. The total number of U.S. bankruptcies filed during the first three months of 2007 increased 65.83 percent over the same period in 2006 in all bankruptcy court districts, according to data released today by the Administrative Office of the U.S. Courts. As total filings reached 193,641 during the first calendar year quarter of 2007 (January 1-March 31), the total surpassed the 116,771 new cases that were filed over the same period in 2006. They also represent a 9.03 percent increase from the 177,599 bankruptcies filed during the fourth quarter of 2006 (Oct. 1 – Dec. 31, 2006).

'Though bankruptcy filings are still low from a historical outlook, new cases are being filed at much higher rates than a year ago, as more households feel the stress of high debt burdens, a trend that is likely to continue,' said ABI Executive Director Samuel J. Gerdano.

Consumer filings increased 66.27 percent to 187,361 for the three-month period ending March 31, 2007 from the 2006 first quarter total of 112,685. They also represent an 8.92 percent increase from the fourth quarter of 2006, which recorded a total of 172,013 nonbusiness filings. The percentage of consumers filing for chapter 13 protection fell slightly from 43.76 percent during the first quarter of 2006 (January 1-March 31) to 39.27 percent over the same period in 2007. The first quarter 2007 percentage of chapter 13 consumer filers is also down from the 42.47 percent recorded in the fourth quarter of 2006.

Business filings for the three-month period ending March 31, 2007 totaled 6,280, representing a 53.7 percent increase over the first quarter 2006 total of 4,086. The first quarter 2007 business filing total also represented a 12.42 percent increase over the fourth quarter 2006 total of 5,586.

While representing an increase over the first quarter 2006 totals, the 2007 first quarter filings are still below the 341,662 first quarter filing average recorded since 1997. This filing shortfall reflects the changes brought about by the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The new law, implemented on Oct. 17, 2005, requires that consumers first go through credit counseling before being eligible for bankruptcy. The new law also reduces the scope of bankruptcy relief.

The 695,575 total filings for the 12-month period ending March 31 were down 61.24 percent from the same period in 2006, which totaled 1,794,795 filings. Nonbusiness filings for the 12-month period ending March 31, 2007, totaled 673,615, down 61.72 percent from the 1,759,503 total nonbusiness filings in the 12-month period ending March 31, 2006. Business filings for the 12-month period ending March 31, 2007, totaled 21,960, down 37.78 percent from the 35,292 bankruptcy petitions filed in the 12-month period ending March 31, 2006.

The 413,294 total chapter 7 filings for the 12-month period ending March 31, 2007, represent a 71.14 percent decrease from the 1,432,074 filings from the same period in 2006. Chapter 13 filings fell 22.24 percent to 276,649 in the 12-month period ending March 31, 2007 from 355,756 in the same period last year. Chapter 11 filings also declined, falling 19.98 percent to 5,199 in 2007 from 6,497 in 2006. Chapter 12 filings rose 1.64 percent from 366 in 2006 to 372 in 2007.

BUSINESS FILINGS for the 3-month period ending March 31, 2007, totaled 6,280, up 53.7 percent from the 4,086 bankruptcy business cases filed in the same period in 2006. NON-BUSINESS FILINGS for the 3-month period ending March 31, 2007, increased 66.27 percent from 112,685 in 2006 to 187,361 in 2007.

The chapter* breakdown of BUSINESS filings for the 3-month period ending March 31, 2007, is: 4,071 chapter 7s, 1,283 chapter 11s, 104 chapter 12s and 817 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending March 31, 2007, is: 113,659 chapter 7s, 123 chapter 11s and 73,579 chapter 13s.

Districts with the LOWEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending March 31, 2007 (compared to the identical period in 2006):

  1. District of the Northern Mariana Islands: 27.59%
  2. Western District of Tennessee: 33.93%
  3. Southern District of Georgia: 35.65%   
  4. Northern District of Georgia: 38.28%
  5. Middle District of Tennessee: 38.49%

Districts with the HIGHEST PERCENTAGE DECREASE in Total Filings for the 12-month period ending March 31, 2007 (compared to the identical period in 2006):

  1. Eastern District of Louisiana: 78.87% 
         
  2. Eastern District of Oklahoma: 77.90%
  3. Southern District of West Virginia: 77.24%      
  4. Western District of Oklahoma: 77.18%
  5. District of Arizona: 75.24%

###

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.

June Consumer Bankruptcy Filings Increase Nearly 37 Percent over Previous Year

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

JUNE CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 37 PERCENT OVER PREVIOUS YEAR

July 9, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased 37.1 percent nationwide in June from the previous year, according to the American Bankruptcy Institute (ABI). Relying on data from the National Bankruptcy Research Center (NBKRC), overall consumer filings totaled 68,559 in June, nearly a 2 percent decrease from the 69,684 filings in May. Chapter 13 filings constituted 38.3 percent of all consumer cases in June, a slight increase over the previous three months.  

'While bankruptcy filings are up more than 30 percent from the same period last year, they are less than half of what they were in 2005,' said Samuel J. Gerdano, ABI Executive Director. 'However, the underlying concerns of high debt loads are still a constant, pointing to rising filings in the future.'

###

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.

Bankruptcy Filings in First Half of 2007 Up 48 Percent from a Year Ago

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

 

BANKRUPTCY FILINGS IN FIRST HALF OF 2007 UP 48 PERCENT FROM A YEAR AGO

August 16, 2007, Alexandria, Va. The total number of U.S. bankruptcies filed during the first six months of 2007 increased 48.23 percent over the same period in 2006 in all bankruptcy court districts, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 404,090 during the first half of the calendar year of 2007 (January 1-June 30), compared to 272,604 cases filed over the same period in 2006.

“The new upward trend in bankruptcies reflects the economic reality of households under increasing financial stress,” said ABI Executive Director Samuel J. Gerdano. “We expect bankruptcy filings to continue to rise for the balance of 2007.”

Filings by individuals or households with consumer debt increased 48.34 percent to 391,105 for the six-month period ending June 30, 2007, from the 2006 first-half total of 263,660. The overall percentage of consumers filing for chapter 13 protection fell slightly from 41.15 percent during the first half of 2006 (January 1-June 30) to 38.35 percent over the same period in 2007. Conversely, the first-half 2007 percentage of chapter 7 consumer filers increased to 61.58 percent from the 58.76 percent recorded in the first half of 2006.

Business filings for the six-month period ending June 30, 2007, totaled 12,985, representing a 45.18 percent increase over the first-half 2006 total of 8,944. Chapter 7 liquidations increased to 8,404 in the first half of 2007, a 65.21 percent increase over the 5,087 business chapter 7 filings during the same period in 2006. Chapter 11 reorganizations also rose from 2,370 in the first half of 2006 to 2,713 in the same period of 2007, a 14.47 percent increase.

The 751,056 total filings for the 12-month period ending June 30 were down 49.41 percent from the same period in 2006, which totaled 1,484,570 filings, a figure that includes a surge in cases filed before the implementation date of a major change in the law. The bankruptcy filing rate per thousand U.S. residents totaled 2.48 for all chapters during the 12-month period ending June 30, 2007, as 1.49 Americans per thousand filed for chapter 7 while 0.97 per thousand filed for chapter 13 bankruptcy. Tennessee was the state with the highest per capita filing rate in the country with 6.03 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 13 filings at 3.78. The state with the highest per capita filing rate for chapter 7 bankruptcy was Indiana at 2.98 per thousand for the 12-month period ended June 30, 2007.

Nonbusiness filings for the 12-month period ending June 30, 2007, totaled 727,167, down 50 percent from the 1,453,008 total nonbusiness filings experienced over the same period in 2006. Business filings for the 12-month period ending June 30, 2007, totaled 23,889, down 24.31 percent from the 31,562 bankruptcy petitions filed in the 12-month period ending June 30, 2006.

The 450,332 total chapter 7 filings for the 12-month period ending June 30, 2007, represent a 61.34 percent decrease from the 1,164,815 filings from the same period in 2006. Chapter 13 filings fell 5.87 percent to 294,693 in the 12-month period ending June 30, 2007, from 313,085 in the same period last year. Chapter 11 filings also declined, falling 10.25 percent to 5,586 in 2007 from 6,224 in 2006. However, chapter 12 filings rose 7.22 percent from 360 in 2006 to 386 in 2007.

BUSINESS FILINGS for the 3-month period ending June 30, 2007, totaled 6,705, up 38.02 percent from the 4,858 bankruptcy business cases filed in the same period in 2006. NON-BUSINESS FILINGS for the 3-month period ending June 30, 2007, increased 34.95 percent from 150,975 in 2006 to 203,744 in 2007.

The chapter* breakdown of BUSINESS filings for the 3-month period ending June 30, 2007, is: 4,333 chapter 7s, 1,430 chapter 11s, 112 chapter 12s and 821 chapter 13s.

The chapter breakdown of NON-BUSINESS filings for the 3-month period ending June 30, 2007, is: 127,180 chapter 7s, 144 chapter 11s and 76,420 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.

Consumer Bankruptcy Filings Increase 17 Percent in August

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


CONSUMER BANKRUPTCY FILINGS INCREASE 17 PERCENT IN AUGUST

September 6, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased 17.3 percent nationwide in August from the previous month, according to the American Bankruptcy Institute (ABI). Relying on data provided by the National Bankruptcy Research Center (NBKRC), overall consumer filings totaled 74,607 in August, up from the 63,600 filings in July. The figure was also up 31.2 percent from August 2006. Chapter 13 filings constituted 39.6 percent of all consumer cases in August, down slightly from last month.  

'The uptick in August bankruptcies continues the trend we've seen all year,' observed ABI Executive Director Samuel J. Gerdano. 'Families facing heavy household debts are increasingly turning to bankruptcy as a short-term fix.'

###

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.

September Consumer Bankruptcy Filings Increase 23 Percent over Previous Year

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

SEPTEMBER CONSUMER BANKRUPTCY FILINGS INCREASE 23 PERCENT OVER PREVIOUS YEAR

October 2, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased nearly 23 percent nationwide in September from the previous year, according to the American Bankruptcy Institute (ABI). Yet according to data from the National Bankruptcy Research Center (NBKRC), the overall September consumer filing total of 68,926 represented a 7.6 percent decrease from the 74,607 filings in August. Chapter 13 filings constituted 40 percent of all consumer cases in September, a slight increase over the previous six months. 

“Bankruptcy filings are elevated from a year ago and likely to uptick further through the end of the year,” said ABI Executive Director Samuel J. Gerdano.  “Continued pressure on housing markets, combined with high consumer debt burdens, will lead more households to consider bankruptcy as an option to their financial problems.”

###

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.

 

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

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

 

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

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

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

###

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.

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.

###

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.

November Consumer Bankruptcy Filings Increase 28 Percent over Previous Year

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

NOVEMBER CONSUMER BANKRUPTCY FILINGS INCREASE 28 PERCENT OVER PREVIOUS YEAR

December 5, 2007, Alexandria, Va. U.S. consumer bankruptcy filings increased more than 28 percent nationwide in November from the previous year, according to the American Bankruptcy Institute (ABI). Yet according to data from the National Bankruptcy Research Center (NBKRC), the overall November consumer filing total of 71,799 represented a 5.5 percent decrease from the 75,975 filings in October. Chapter 13 filings constituted 39.53 percent of all consumer cases in November, a slight increase over October. 

“Consumer bankruptcy filings remain elevated this year,” said ABI Executive Director Samuel J. Gerdano. “High household debt and the fallout from rising mortgage costs could contribute to a surge in bankruptcies in 2008.”

###

ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 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.

Pages