Contact: John Hartgen
703-739-0800
APRIL
CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 48 PERCENT OVER PREVIOUS
YEAR
May 2, 2008,
size='3'>Alexandria
w:st='on'>
size='3'>Va.
size='3'>U.S.
size='3'>consumer bankruptcy filings increased 47.7 percent nationwide
in April from the same period a year ago, according to the American
Bankruptcy Institute (
size='3'>ABI
from the National Bankruptcy Research Center (NBKRC). The overall April
consumer filing total of 92,291 also represented a 7.1 percent increase
from the 86,165 filings in March. Chapter 13 filings constituted 31.14
percent of all consumer cases in April, a slight decrease from
March.
“The sharp spike in
consumer bankruptcies reflects the growing financial stress faced by
American families, saddled with household debt and mortgage woes,”
said
size='3'>ABI
Samuel J. Gerdano. “We expect consumer bankruptcies to top 1
million new cases this year'.
###
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
title='blocked::http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
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
href='http://www.nbkrc.com/'>
color='#0000ff' size='3'>http://www.nbkrc.com
face='Times New Roman' size='3'>.
size='3'>*Definitions from Bankruptcy
Overview: Issues, Law and Policy
size='3'>, 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.
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.