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October Consumer Bankruptcy Filings Climb to Highest Monthly Level Since New Law Took Effect

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Contact: John Hartgen

            

703-739-0800

            

jhartgen@abiworld.org

 

OCTOBER
CONSUMER BANKRUPTCY FILINGS CLIMB TO HIGHEST MONTHLY LEVEL SINCE NEW LAW

TOOK EFFECT

November 5, 2007,
Alexandria,
w:st='on'>Va.
October consumer

bankruptcy filings increased to 75,975, the highest monthly total since
the new bankruptcy law took effect two years ago, according to the
American Bankruptcy Institute (
w:st='on'>ABI
). Data from the National Bankruptcy
Research Center (NBKRC) also showed that the October consumer filings
represented a 10.23 percent increase from the 68,926 filings in
September. Chapter 13 filings constituted 39.47 percent of all consumer
cases in October.  The percentage of chapter 13 filings may
increase further if proposed home mortgage modification legislation
passes Congress. Experts at a House hearing last week testified that
500,000 foreclosures could be averted by using bankruptcy to write down
mortgages in the falling housing market.

'Chapter 13's could spike to
record levels if Congress enacts pending legislation to allow homeowners

to rewrite their mortgages by filing for bankruptcy,'
w:st='on'>ABI
Executive Director Samuel J.
Gerdano. 

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size='3'>ABI
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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
w:st='on'>ABI
membership includes more than 11,500
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
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