U.S. Households File for Bankruptcy at Record Levels in 2005

Contact: John
Hartgen

            
(703) 739-0800

            
jhartgen@abiworld.org

w:st='on'>
size='3'>U.S.
face='Times New Roman' size='3'> HOUSEHOLDS FILE FOR BANKRUPTCY AT
RECORD LEVELS IN 2005

size='3'>April 17, 2006, Alexandria, Va.
— As consumers filed for bankruptcy in record numbers in 2005, the
American Bankruptcy Institute (ABI) found that there was one personal
bankruptcy for every 60 U.S. households in calendar year 2005, a record
level driven largely in response to families looking to file for
bankruptcy protection prior to the implementation the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 (BAPCPA). This is a 23
percent increase from calendar year 2004, which showed that nearly one
out of 79 households filed for bankruptcy.

“The latest report
underscores the level of financial stress for
w:st='on'>
size='3'>U.S.
size='3'>families,” said Samuel J. Gerdano, ABI Executive
Director. “It also reflects the fear, if not panic, surrounding
the effect of the new bankruptcy law,” he added.

The data can be viewed
at http://www.abiworld.org/stats
face='Times New Roman'>.
size='3'>  The table, based on data from the
Administrative Office of the U.S. Courts (2005 non business bankruptcies
as of December 31, 2005) and the U.S. Bureau of the Census (U.S.
household unit estimates as of July 1, 2004), ranks households per
filing by state and nationally. The five states with the highest
bankruptcy household-per-filing rates are
w:st='on'>
size='3'>Indiana,
w:st='on'>
size='3'>Ohio,
w:st='on'>
size='3'>Utah,
w:st='on'>
size='3'>Tennessee and

size='3'>Oklahoma. States
with the lowest rates include
face='Times New Roman' size='3'>South Carolina
size='3'>,
size='3'>Alaska,
w:st='on'>
size='3'>Vermont, the
District of
Columbia and
w:st='on'>
size='3'>Hawaii. By
contrast, states with the highest bankruptcy household-per-filing rates
in calendar year 2004 were Utah,

size='3'>Tennessee,

size='3'>Georgia,

size='3'>Alabama and
w:st='on'>
size='3'>Indiana. The
states with the lowest rates in 2004 included
w:st='on'>
size='3'>Vermont,
w:st='on'>
size='3'>Alaska,
w:st='on'>
size='3'>Hawaii,
size='3'>Maine and
w:st='on'>
size='3'>Massachusetts
size='3'>.

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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 11,000 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'
size='3'>http://www.abiworld.org/conferences.html
face='Times New Roman' size='3'>.