Contact: John Hartgen
703-739-0800
CONSUMER
BANKRUPTCY FILINGS INCREASE NEARLY 12 PERCENT IN MAY
June 6, 2007,
w:st='on'>Va.
w:st='on'>
w:st='on'>U.S.
filings increased 11.5 percent nationwide in May from the previous
month, said the American Bankruptcy Institute (
w:st='on'>ABI
Bankruptcy Research Center (NBKRC), overall consumer filings totaled
69,684 in May, up from 62,489 filings in April. The figure was also up
51.3 percent from May 2006. Chapter 13 filings constituted 36.5 percent
of all consumer cases in May, down slightly from earlier this
year.
“Personal bankruptcies
continue to be more volatile this year than in 2006,” said Samuel
J. Gerdano,
Director. “Overall, consumer bankruptcies are higher than last
year, but still well below the levels of 2004-05.”
###
size='3'>ABI
nonpartisan organization dedicated to research and education on matters
related to insolvency.
was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The
w:st='on'>ABI
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
For additional conference information, visit
title='http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.
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
href='http://www.nbkrc.com/'>
color='#0000ff' size='3'>http://www.nbkrc.com.
*Definitions from
Bankruptcy Overview: Issues, Law and Policy, by the American
Bankruptcy Institute.
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.
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.
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.