BURLINGAME, Calif. — Bankruptcy filings surged prior to last year's implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act, but filers abruptly put the brakes on immediately after the Oct. 17, 2005 effective date.

Annualizing third quarter data, Lundquist Consulting, Inc. found that one in 170 households filed bankruptcy in 2006, as opposed to one in 53 in the third quarter of 2005. "While bankruptcy filings rates are rising, they continue to remain significantly lower than historic levels," Chris Lundquist, founder of Lundquist Consulting, said. "A significant amount of the decrease can be explained by the large volume of consumers who filed Chapter 7 in October 2005, making it still too early to understand the long-term affects of BAPCPA."

Lundquist's third quarter findings showed that bankruptcy filings are steadily rising, quarter over quarter, for the year. Third quarter 2006 filings totaled 160,198, a 12.2% increase from the second quarter and a 55.6% growth over the first quarter. The total number of filings in the one-year period since the enactment of the new law (Oct. 17, 2005 through Oct. 16, 2006) was 475,000. Filings averaged 1.4 to 1.5 million a year between 2000 and 2004.

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