Contact: John Hartgen
703-739-0800
href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org
JANUARY
CONSUMER BANKRUPTCY FILINGS INCREASE 30 PERCENT OVER PREVIOUS
YEAR
February 4, 2008,
Alexandria,
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size='3'>U.S. consumer bankruptcy filings increased more than 30 percent
nationwide in January from the same period a year ago, according to the
American Bankruptcy Institute (ABI) relying on data from the National
Bankruptcy Research Center (NBKRC). While the consumer filings for
January increased from the previous year, the data showed that the
overall January consumer filing totals were flat from December. Chapter
13 filings constituted 40.05 percent of all consumer cases in January, a
slight increase over December.
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“With over one million
more subprime adjustable-rate mortgages due to reset during 2008, the
payment shock for many households could lead to higher bankruptcies this
year,” said ABI Executive Director Samuel J. Gerdano.
The overall consumer filing
total for the 2007 calendar year (Jan. 1 – Dec. 31, 2007) reached
801,840, nearly a 40 percent increase from the 573,203 filings recorded
during the similar period in 2006.
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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 11,700 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
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
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*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.