X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON — Bankruptcy filings increased by 30% during the 12-month period ending Sept. 30, 2008, according to data compiled by the Administrative Office of the U.S. CourtsThere were 1,004,342 nonbusiness bankruptcy filings, a 30% increase, and 38,651 business filings, a 49% increase.The data reflect the impact of the economic crisis, which was triggered in large part by the collapse of the housing market that surfaced during the summer of 2007. Since then, unemployment has increased, home values have plummeted and foreclosures have escalated-all factors that can lead people to declare bankruptcy.In November, initial foreclosure proceedings were up 28% over the previous November and unemployment rose to 6.7%.This year’s filings were the highest since the fiscal year ending Sept. 30, 2006, the year after Congress revamped the bankruptcy laws. That year there were 1.1 million filings, compared with 1.7 million the previous year.The law tightened eligibility requirements for Chapter 7 filings, which erases most debts, and pushed more consumers into filing under Chapter 13, which requires that creditors be paid.There were 679,982 Chapter 7 filings during the year ending Sept. 30, 2008, a 40% increase from the previous year. Chapter 13 filings increased 14% to 353,828.Tennessee, Nevada, Georgia, Alabama and Indiana had the highest rates of bankruptcy. The lowest rates were in the Virgin Islands, the Northern Mariana Islands, Guam, Alaska and Hawaii.From July 1 through Sept. 30, bankruptcy filings increased 34% over the same period in 2007.–cmarx@cutimes.com

Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.