Bankruptcy Filings Nearing Million
By Jill Michaux, Kansas Bankruptcy Attorney on Aug 28, 2008 in Benefits of Bankruptcy, General Bankruptcy Information
Almost a million bankruptcy cases were filed in the United States in the past year ending June 30, 2008, according to statistics released by the government.
- Consumer filings were up 28.4 percent and business filings were up 41.6 percent compared to a year ago.
- Chapter 7 cases increased 36.7 percent, Chapter 13 filings are up 16.9 percent.
- Chapter 11 filings for corporations and individuals with large debt loads, typically business proprietors, increased 30.6 percent.
- Only Chapter 12 filings for family farmers decreased, falling 18.7 percent to 314 cases.
More bankruptcy cases were filed this past quarter than any three-month period since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was made law in 2005. Case filings soared in the fall of 2005 before most of the act’s provisions took effect on October 17, 2005, then plummeted.
The drum beat by creditors for bankruptcy reform began a decade ago when case filings hit the million mark.
Reasons for the increase in bankruptcy filings are discussed by my blogging colleague, Carmen Dellutri of southwest Florida in his recent post.
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