Contact:
Hartgen
(703) 739-0800
color='#0000ff'>jhartgen@abiworld.org
SEPTEMBER
CONSUMER BANKRUPTCY FILINGS INCREASE 23 PERCENT OVER PREVIOUS
YEAR
October 2, 2007,
Alexandria,
size='3'>.
size='3'>consumer bankruptcy filings increased nearly 23 percent
nationwide in September from the previous year, according to the
American Bankruptcy Institute (
face='Times New Roman' size='3'>ABI
size='3'>). Yet according to data from the National Bankruptcy Research
Center (NBKRC), the overall September consumer filing total of 68,926
represented a 7.6 percent decrease from the 74,607 filings in August.
Chapter 13 filings constituted 40 percent of all consumer cases in
September, a slight increase over the previous six months.
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“Bankruptcy filings
are elevated from a year ago and likely to uptick further through the
end of the year,” said
face='Times New Roman' size='3'>ABI
size='3'>Executive Director Samuel J. Gerdano. “Continued
pressure on housing markets, combined with high consumer debt burdens,
will lead more households to consider bankruptcy as an option to their
financial problems.”
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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 11,500 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
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.
size='3'>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.