Consumer Bankruptcy Filings Up Nearly 40 Percent in 2007
Contact: John Hartgen
703-739-0800
[email protected]
CONSUMER BANKRUPTCY FILINGS UP NEARLY 40 PERCENT IN 2007
January 3, 2008, Alexandria,
“The roughly 40 percent
spike in consumer bankruptcies during 2007 presages even higher filings
this year, as the heavy consumer debt load is made worse by the home
mortgage crisis,” predicted
However, NBKRC’s data also showed that the 66,389 consumer filings recorded in December represented a 7.5 percent decrease from the 71,799 filings in November. Chapter 13 filings constituted 38.32 percent of all consumer cases in December, a slight decrease from November.
###
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from
Bankruptcy Overview: Issues, Law and Policy, by the American
Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
January Consumer Bankruptcy Filings Increase 30 Percent over Previous Year
Contact: John Hartgen
703-739-0800
[email protected]
JANUARY CONSUMER BANKRUPTCY FILINGS INCREASE 30 PERCENT OVER PREVIOUS YEAR
February 4, 2008,
Alexandria,
“With over one million more subprime adjustable-rate mortgages due to reset during 2008, the payment shock for many households could lead to higher bankruptcies this year,” said ABI Executive Director Samuel J. Gerdano.
The overall consumer filing total for the 2007 calendar year (Jan. 1 – Dec. 31, 2007) reached 801,840, nearly a 40 percent increase from the 573,203 filings recorded during the similar period in 2006.
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from
Bankruptcy Overview: Issues, Law
and Policy, by the
American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code
is available to both individual and business debtors. Its purpose is to
achieve a fair distribution to creditors of the debtor’s available
non-exempt property. Unsecured debts not reaffirmed are
discharged, providing a fresh financial
start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
February Consumer Bankruptcy Filings Increase 15 Percent
Contact: John Hartgen
703-739-0800
[email protected]
FEBRUARY CONSUMER BANKRUPTCY FILINGS INCREASE 15 PERCENT
March 3, 2008, Alexandria,
“February's bankruptcy spike -- the highest single month since the 2005 law changes -- forecasts the start of more to come for the balance of 2008,” 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 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from
Bankruptcy Overview: Issues, Law and Policy, by the American
Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
First Quarter Consumer Bankruptcy Filings Increase 27 Percent over Previous Year
Contact: John Hartgen
703-739-0800
[email protected]
FIRST QUARTER CONSUMER BANKRUPTCY FILINGS INCREASE 27 PERCENT OVER PREVIOUS YEAR
April 2, 2008, Alexandria,
“Bankruptcies are rising due to the heavy burden of household debt and growing mortgage problems,” said ABI Executive Director Samuel J. Gerdano. “We expect this trend to continue through 2008.”
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from
Bankruptcy Overview: Issues, Law and Policy, by the American
Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
Total Bankruptcy Filings Increase Nearly 38 Percent in 2007
Contact: John Hartgen
703-739-0800
[email protected]
TOTAL BANKRUPTCY FILINGS INCREASE NEARLY 38 PERCENT IN 2007
April 15, 2008
“The latest figures
ratify trends that began last year, depicting households under growing
stress from heavy consumer debts, now in homes they can’t afford
and can’t sell,” said
Business bankruptcies recorded the sharpest percentage increase as the 28,322 business filings during calendar year 2007 represented a 43.8 percent increase in filings from the record low of 19,695 filings made during the 12-month period ending Dec. 31, 2006. While the 12-month business filing total for 2007 was still lower than any year prior to 2006, the 2007 total was trending towards the 35,293 business filings averaged annually for the past decade (1998-2007).
Consumer filings rebounded to 822,590 during the 2007 calendar year, representing a 37.6 percent increase over the 597,965 recorded during the same period in 2006. The 500,613 consumer chapter 7 filings during the 12-month period ending Dec. 31, 2007, comprised 60.9 percent of the total consumer filings for the 2007 calendar year. The chapter 7 total for 2007 represented a 43.4 percent increase over the 349,012 consumer chapter 7 filings during 2006.
The 321,359 consumers who filed for chapter 13 during the 12-month period ending Dec. 31, 2007, comprised 39.1 percent of the overall consumer filing total. The chapter 13 total for 2007 represents a 29.4 percent increase over the 248,430 consumer chapter 13 filings during 2006.
The 226,413 total bankruptcies recorded during the fourth calendar quarter of 2007 (Oct.1-Dec. 31) represent a 27.5 percent increase from the 177,599 filings during the same period in 2006. The 2007 fourth calendar quarter filing total was the highest of any previous quarter for 2007 and represented a 3.4 percent increase over the third quarter (July 1 – Sept. 30) total of 218,909.
The 218,428 consumer filings in the fourth quarter of 2007 represent a 27 percent increase in comparison to the 172,013 consumer filings for the same quarter of 2006. The consumer filing total for the fourth calendar quarter also represented a 3.2 percent increase from the previous total of 211,742 filings from the third quarter of 2006.
Business filings, which totaled 7,985 for the fourth calendar quarter of 2007, represented a 43 percent increase from the 5,586 filed in the same 3-month period in 2006 (Oct. 1-Dec. 31). Business filings also rose over the previous quarter as the fourth calendar quarter represented a 11.4 percent increase over 7,167 business filings reported during the third quarter of 2007 (July 1- Sept. 30).
The chapter* breakdown of BUSINESS filings for the 3-month period ending Dec.31, 2007, is 5,420 chapter 7s, 1,612 chapter 11s, 77 chapter 12s and 869 chapter 13s.
The chapter breakdown of NONBUSINESS filings for the 3-month period ending Dec. 31, 2007, is 132,192 chapter 7s, 181 chapter 11s and 86,055 chapter 13s.
States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending Dec. 31, 2007:
1. Tennessee
2. Georgia
3. Alabama
4. Indiana
5. Michigan
6. Ohio
7. Nevada
8. Arkansas
9. Kentucky
10. Mississippi
Districts with the HIGHEST PERCENTAGE INCREASE in Total Filings for the 12-month period ending Dec. 31, 2007 (compared to the identical period in 2006):
1. District of Nevada: 98.5%
2. Eastern District of California: 93.6%
3.
Central District
of
4. Southern District of California: 82.9%
5. District of Maine: 74.2%
Districts with the LOWEST PERCENTAGE INCREASE in Total Filings for the 12-month period ending Dec. 31, 2007 (compared to the identical period in 2006):
1.
District of the
2.
District of the
3. District of Montana: 1.8%
4.
Western District of
5.
Middle District of
More information will be available at ABI’s Statistics Page, http://www.abiworld.org/statistics.
###
*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.
April Consumer Bankruptcy Filings Increase Nearly 48 Percent over Previous Year
Contact: John Hartgen
703-739-0800
[email protected]
APRIL CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 48 PERCENT OVER PREVIOUS YEAR
May 2, 2008,
“The sharp spike in
consumer bankruptcies reflects the growing financial stress faced by
American families, saddled with household debt and mortgage woes,”
said
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy
Overview: Issues, Law and Policy, by the American Bankruptcy Institute.
Chapter
7 of the Bankruptcy Code is available to
both individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
May Consumer Bankruptcy Filings Increase Nearly 31 Percent Over Previous Year
Contact: John Hartgen
703-739-0800
[email protected]
MAY CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 31 PERCENT OVER PREVIOUS YEAR
June 5, 2008, Alexandria, Va.- U.S. consumer bankruptcy filings increased 30.9 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 91, 214 was down slightly by 1.2 percent from the 92,291 filings recorded in April. Chapter 13 filings constituted 31.9 percent of all consumer cases in May, a slight increase from April.
“At current trends, we project that new bankruptcies will exceed the milestone of one million cases this year,” said ABI Executive Director Samuel J. Gerdano. “This would be the first year reaching a million filings since Congress restricted access to bankruptcy in 2005.”
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to
up-to-date research and statistics on bankruptcy filings. The database
contains complete information dating back to 1995. For more information
on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the
American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both individual and
business debtors. Its purpose is to achieve a fair distribution to
creditors of the debtor's available non-exempt property. Unsecured
debts not reaffirmed are discharged, providing a fresh financial
start.
Chapter 11 of the Bankruptcy Code is available for both business and
consumer debtors. Its purpose is to rehabilitate a business as a going
concern or reorganize an individual's finances through a court-approved
reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt
relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with
regular income whose debts do not exceed specific amounts; it is
typically used to budget some of the debtor's future earnings under a
plan through which unsecured creditors are paid in whole or in part.
Total Bankruptcy Filings Increase Nearly 27 Percent Over First Quarter 2007
Contact: John Hartgen
703-739-0800
[email protected]
TOTAL BANKRUPTCY FILINGS INCREASE NEARLY 27 PERCENT OVER FIRST QUARTER
2007
June 3, 2008, Alexandria, Va.— The total number
of U.S. bankruptcies filed during the first three months of 2008
increased 26.9 percent over the same period in 2007 in all bankruptcy
court districts, according to data released today by the Administrative
Office of the U.S. Courts. As total filings reached 245,695 during the
first calendar year quarter of 2008 (Jan. 1-March 31), the total
surpassed the 193,641 new cases that were filed over the same period in
2007. The total filings in the 2008 first quarter also represent an 8.5
percent increase from the 226,413 bankruptcies filed during the fourth
quarter of 2007 (Oct. 1 – Dec. 31).
“This ninth consecutive quarterly increase in filings since
Congress attempted to restrict access to bankruptcy relief demonstrates
again the influence of rising household debt,” said Samuel J.
Gerdano, ABI Executive Director. “We expect filings to
surge past 1 million cases by year-end.”
The first quarter 2008 filing total represents a 110 percent increase
from the 116,771 total filings recorded during the first calendar
quarter of 2006, the first full quarter following the implementation of
the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
(BAPCPA).
Consumer filings increased 26.5 percent to 236,982 for the three-month
period ending March 31, 2008, from the 2007 first quarter total of
187,361. They also represent an 8.5 percent increase from the fourth
quarter of 2007, which recorded a total of 218,428 nonbusiness filings.
The percentage of consumers filing for chapter 13 protection fell
slightly from 39.3 percent during the first quarter of 2007 (January
1-March 31) to 35.6 percent over the same period in 2008. The number of
consumers filing for chapter 7 protection increased to 64.4 percent
during the first three months of 2008, the largest percentage of
consumer chapter 7 filers since the implementation of BAPCPA.
Business filings for the three-month period ending March 31, 2008
totaled 8,713, representing a 38.7 percent increase over the first
quarter 2007 total of 6,280. The first quarter 2008 business filing
total also represented a 9.1 percent increase over the fourth quarter
2007 total of 7,985.
The 12-month filing total of 901,927 for the period ending March 31 is
an increase of 29.7 percent from the same period in 2007, which totaled
695,575 filings. Nonbusiness filings for the 12-month period ending
March 31, 2008, totaled 871,186, up 29.3 percent from the 673,615 total
nonbusiness filings in the 12-month period ending March 31, 2007.
Business filings for the 12-month period ending March 31, 2008, totaled
30,741, up 40 percent from the 21,960 business bankruptcy petitions
filed in the 12-month period ending March 31, 2007.
The 560,015 total chapter 7 filings for the 12-month period ending March
31, 2008, represent a 35.5 percent increase from the 413,294 filings
from the same period in 2007. Chapter 13 filings increased 20.9 percent
to 334,551 in the 12-month period ending March 31, 2008 from 276,649 in
the same period last year. Chapter 11 filings also increased, rising
34.1 percent to 6,971 in 2008 from 5,199 in 2007. Chapter 12 filings
decreased 8.5 percent from 372 in 2007 to 343 in 2008.
BUSINESS FILINGS for the 3-month
period ending March 31, 2008, totaled 8,713, up 38.7 percent from the
6,280 bankruptcy business cases filed in the same period in 2007.
NON-BUSINESS FILINGS for the 3-month period ending March 31,
2008, increased 26.5 percent from 187,361 in 2007 to 236,982 in
2008.
The chapter* breakdown of BUSINESS filings for the 3-month
period ending March 31, 2008, is: 5,959 chapter 7s, 1,182 chapter 11s,
81 chapter 12s and 858 chapter 13s.
The chapter breakdown of NON-BUSINESS filings for the 3-month
period ending March 31, 2008, is: 152,543 chapter 7s, 200 chapter 11s
and 84,239 chapter 13s.
Districts with the Highest Percentage INCREASE in Total Filings
for the 12-month period ending March 31, 2008 (compared to the identical
period in 2007):
1. Eastern District of California: 83.2%
2. District of Nevada: 82.1%
3. Central District of California: 79.0%
4. Southern District of California: 68.3%
Districts with the Highest Percentage DECREASE in Total Filings
for the 12-month period ending March 31, 2008 (compared to the identical
period in 2007):
1. District of the Northern Mariana Islands:
38.1%
2. District of the Virgin Islands: 4.2%
3. Northern District of New York: 2.2%
4. District of Guam: 0.8%
###
ABI is the largest multi-disciplinary,
nonpartisan organization dedicated to research and education on matters
related to insolvency. ABI was founded in 1982 to provide Congress and
the public with unbiased analysis of bankruptcy issues. The ABI
membership includes more than 11,700 attorneys, accountants, bankers,
judges, professors, lenders, turnaround specialists and other bankruptcy
professionals, providing a forum for the exchange of ideas and
information. For additional information on ABI, visit www.abiworld.org.
For additional conference information, visit http://www.abiworld.org/conferences.html.
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the
American Bankruptcy Institute
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business
and consumer debtors. Its purpose is to rehabilitate a business as a
going concern or reorganize an individual’s finances through a
court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special
debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual
with regular income whose debts do not exceed specific amounts; it is
typically used to budget some of the debtor’s future earnings
under a plan through which unsecured creditors are paid in whole or in
part.
Consumer Bankruptcy Filings in First Half of 2008 Up 30 Percent from a Year Ago
Contact: John Hartgen
703-739-0800
[email protected]
CONSUMER BANKRUPTCY FILINGS IN FIRST HALF OF 2008 UP 30 PERCENT FROM A YEAR AGO
July 2, 2008, Alexandria, Va.— U.S. consumer
bankruptcy filings increased 30 percent nationwide during the first six
months of 2008 (Jan. 1-June 30) from the same period a year ago,
according to the American Bankruptcy Institute (ABI), relying on data
from the National Bankruptcy Research Center (NBKRC). The overall June
consumer filing total of 82,770 was 20.7 percent more than the 68,559
consumer filings recorded in June 2007. While the June total represented
an increase over the previous year, it was a 9.3 percent decrease from
the May 2008 total of 91,214 consumer filings. Chapter 13 filings
constituted 32.6 percent of all consumer cases in June, a slight
increase from May.
“The overall trend of rising bankruptcies reflects the growing
financial strain of felt by U.S. households, burdened by high debt,
rising mortgage costs and falling home values,” said ABI Executive
Director Samuel J. Gerdano.
###
ABI is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to insolvency.
ABI was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The ABI membership includes more than
11,700 attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals, providing a
forum for the exchange of ideas and information. For additional
information on ABI, visit www.abiworld.org. For additional
conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to
up-to-date research and statistics on bankruptcy filings. The database
contains complete information dating back to 1995. For more information
on NBKRC, please visit http://www.nbkrc.com <http://www.nbkrc.com/> .
*Definitions from Bankruptcy Overview: Issues, Law and Policy, by the
American Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor’s available non-exempt property. Unsecured debts not reaffirmed are discharged, providing a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
July Consumer Bankruptcy Filings Increase 48 Percent over Previous Year
Contact: John Hartgen
703-739-0800
[email protected]
JULY CONSUMER BANKRUPTCY FILINGS INCREASE 48 PERCENT OVER PREVIOUS
YEAR
August 4, 2008, Alexandria, Va.— U.S. consumer bankruptcy filings increased 48 percent nationwide in July 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 July consumer filing total of 94,124 also represented an increase of 13.7 percent from the 82,770 filings recorded in June. Chapter 13 filings constituted 32.5 percent of all consumer cases in July, a slight decrease from June.
“The most recent uptick in bankruptcy filings reflects growing stress on the household finances of U.S. families,” said ABI Executive Director Samuel J. Gerdano. “We expect bankruptcies to continue to surge past 1 million new cases by year end.”
###
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy
Overview: Issues, Law and Policy, by the American Bankruptcy Institute.
Chapter
7 of the Bankruptcy Code is available to
both individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.