Contact: John Hartgen
703-739-0800
BANKRUPTCY
FILINGS INCREASE 66 PERCENT OVER FIRST QUARTER 2006
June 27, 2007,
w:st='on'>Alexandria
w:st='on'>Va.
w:st='on'>U.S.
during the first three months of 2007 increased 65.83 percent over the
same period in 2006 in all bankruptcy court districts, according to data
released today by the Administrative Office of the U.S. Courts. As total
filings reached 193,641 during the first calendar year quarter of 2007
(January 1-March 31), the total surpassed the 116,771 new cases that
were filed over the same period in 2006. They also represent a 9.03
percent increase from the 177,599 bankruptcies filed during the fourth
quarter of 2006 (Oct. 1 – Dec. 31, 2006).
'Though bankruptcy filings are
still low from a historical outlook, new cases are being filed at much
higher rates than a year ago, as more households feel the stress of high
debt burdens, a trend that is likely to continue,' said
w:st='on'>ABI
Gerdano.
Consumer filings increased
66.27 percent to 187,361 for the three-month period ending March 31,
2007 from the 2006 first quarter total of 112,685. They also represent
an 8.92 percent increase from the fourth quarter of 2006, which recorded
a total of 172,013 nonbusiness filings. The percentage of consumers
filing for chapter 13 protection fell slightly from 43.76 percent during
the first quarter of 2006 (January 1-March 31) to 39.27 percent over the
same period in 2007. The first quarter 2007 percentage of chapter 13
consumer filers is also down from the 42.47 percent recorded in the
fourth quarter of 2006.
Business filings for the
three-month period ending March 31, 2007 totaled 6,280, representing a
53.7 percent increase over the first quarter 2006 total of 4,086. The
first quarter 2007 business filing total also represented a 12.42
percent increase over the fourth quarter 2006 total of
color='black'>5,586.
While representing an increase
over the first quarter 2006 totals, the 2007 first quarter filings are
still below the 341,662 first quarter filing average recorded since
1997. This filing shortfall reflects the changes brought about by the
implementation of the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005 (BAPCPA). The new law, implemented on Oct. 17,
2005, requires that consumers first go through credit counseling before
being eligible for bankruptcy. The new law also reduces the scope of
bankruptcy relief.
The 695,575 total filings for
the 12-month period ending March 31 were down 61.24 percent from the
same period in 2006, which totaled 1,794,795 filings. Nonbusiness
filings for the 12-month period ending March 31, 2007, totaled 673,615,
down 61.72 percent from the 1,759,503 total nonbusiness filings in the
12-month period ending March 31, 2006. Business filings for the 12-month
period ending March 31, 2007, totaled 21,960, down 37.78 percent from
the 35,292 bankruptcy petitions filed in the 12-month period ending
March 31, 2006.
The 413,294 total chapter 7
filings for the 12-month period ending March 31, 2007, represent a 71.14
percent decrease from the 1,432,074 filings from the same period in
2006. Chapter 13 filings fell 22.24 percent to 276,649 in the 12-month
period ending March 31, 2007 from 355,756 in the same period last year.
Chapter 11 filings also declined, falling 19.98 percent to 5,199 in 2007
from 6,497 in 2006. Chapter 12 filings rose 1.64 percent from 366 in
2006 to 372 in 2007.
BUSINESS FILINGS
for the 3-month period ending March 31, 2007, totaled 6,280, up 53.7
percent from the 4,086 bankruptcy business cases filed in the same
period in 2006. NON-BUSINESS FILINGS for the 3-month period
ending March 31, 2007, increased 66.27 percent from 112,685 in 2006 to
187,361 in 2007.
The chapter* breakdown of
BUSINESS filings for the 3-month period ending March 31, 2007,
is: 4,071 chapter 7s, 1,283 chapter 11s, 104 chapter 12s and 817 chapter
13s.
The chapter breakdown of
NON-BUSINESS filings for the 3-month period ending March 31,
2007, is: 113,659 chapter 7s, 123 chapter 11s and 73,579 chapter
13s.
Districts with the
LOWEST PERCENTAGE DECREASE in Total Filings for the
12-month period ending March 31, 2007 (compared to the identical period
in 2006):
- District of the
w:st='on'>Northern Mariana Islands
- Western District of
w:st='on'>
33.93%
- Southern District of Georgia:
35.65%
- Northern District of Georgia:
38.28%
- Middle District of
w:st='on'>
38.49%
Districts with the
HIGHEST PERCENTAGE DECREASE in Total Filings for the
12-month period ending March 31, 2007 (compared to the identical period
in 2006):
- Eastern District of Louisiana:
78.87%
size='3'> - Eastern District of Oklahoma:
77.90%
- Southern District of West
Virginia: 77.24%
- Western District of
w:st='on'>
77.18%
- District of Arizona:
75.24%
###
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.
*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.