Bankruptcy Filings Up 11% in First Nine Months
U.S. consumer bankruptcy filings continue to increase, jumping 11% for the first nine months of year, the American Bankruptcy Institute reported Thursday.
For the period Jan. 1-Sept. 30, there were 1,165,172 filings nationwide compared to the 1,046,449 consumer filings in 2009 based on data from the National Bankruptcy Research Center.
"The consumer filings for the three quarters of 2010 represent the highest total since 2005, when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act to try and stem the tide of filings," ABI said.
While the 2005 bankruptcy overhaul law aimed to reduce filings, "overall consumer debt and continued financial stress have led to bankruptcies climbing back to pre-BAPCPA levels," said ABI Executive Director Samuel J. Gerdano. "We expect that there will be nearly 1.6 million new bankruptcy filings by year end."
The September consumer filing total of 130,329 was 4.4% more than the 124,790 consumer filings recorded in September 2009. The September total also represented a 3.3% increase from the August 2010 total of 127,028 consumer filings. Chapter 13 filings constituted 30% of all consumer cases in September, a slight increase from August.