Contact: John Hartgen
(703) 739-0800
color='#0000ff'>jhartgen@abiworld.org
CONSUMER
BANKRUPTCY FILINGS UP NEARLY 33 PERCENT IN 2008
size='3'>January 5, 2009, Alexandria, Va
size='3'>.
size='3'>— U.S. consumer bankruptcy
filings increased nearly 33 percent nationwide in 2008 from the previous
year, according to the American Bankruptcy Institute (ABI) relying on
data from the National Bankruptcy Research Center (NBKRC). The data
showed that the overall consumer filing total for the 2008 calendar year
(Jan. 1 – Dec. 31, 2008) reached
size='3'>1,064,927 compared to the 801,840 total
consumer filings recorded during 2007.
“Consumers are under
great financial stress, with no immediate end in sight,” said ABI
Executive Director Samuel J. Gerdano. “We expect
the upward spike in personal bankruptcies to continue in
2009.”
However, NBKRC’s data
also showed that the 84,926 consumer filings recorded in December
represented a 15 percent decrease from the 99,925 filings in November.
Chapter 13 filings constituted 32 percent of all consumer cases in
December, a slight decrease from November.
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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
face='Times New Roman' color='#0000ff'
size='3'>http://www.abiworld.org/conferences.html
face='Times New Roman' size='3'>.
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
face='Times New Roman' size='3'>.
*Definitions from
Bankruptcy Overview: Issues, Law
and Policy, by the
American Bankruptcy Institute.
size='3'>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.
size='3'>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.
size='3'>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.