Contact: John Hartgen
703-739-0800
FEBRUARY
CONSUMER BANKRUPTCY FILINGS INCREASE 15 PERCENT
March 3, 2008, Alexandria,
w:st='on'>
w:st='on'>U.S.
filings increased more than 15.2 percent nationwide in February over the
previous month, according to the American Bankruptcy Institute (ABI),
relying on data from the National Bankruptcy Research Center (NBKRC).
Overall consumer filings totaled 76,120 in February, up from the 66,050
consumer filings recorded in January. The figure was also up 37.3
percent from February 2007. Chapter 13 filings constituted 36.4 percent
of all consumer cases in February, down slightly from last
month.
“February's bankruptcy
spike -- the highest single month since the 2005 law changes --
forecasts the start of more to come for the balance of 2008,” ABI
Executive Director Samuel J. Gerdano.
###
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
href='http://www.abiworld.org/conferences.html'>
size='3'>http://www.abiworld.org/conferences.html.
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.
*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.