Contact: John Hartgen
(703) 894-5935
color='#0000ff'>jhartgen@abiworld.org
JANUARY
CONSUMER BANKRUPTCY FILINGS DECREASE 10 PERCENT FROM
DECEMBER
size='3'>February 2, 2010, Alexandria, Va
size='3'>.
size='3'>— The 102,254 consumer
bankruptcies filed in January represented a 10 percent decrease
nationwide from the 113,274 consumer filings
recorded in December, according to the American
Bankruptcy Institute (ABI) relying on data from the National Bankruptcy
Research Center (NBKRC). NBKRC’s data also showed that the January
2010 consumer filings represented a 15 percent increase over the
88,773consumer filings recorded in January 2009. Chapter 13 filings
constituted 30 percent of all consumer cases in January, representing a
2 percent increase from December.
“While January
represented a drop in filings from the previous month, high unemployment
rates, unsustainable mortgage burdens and other economic stresses will
push more consumers to seek the financial relief of bankruptcy in
2010,” said ABI Executive Director Samuel J. Gerdano.
“Consumer filings this year will likely surpass the 1.4 million
consumer filings recorded in 2009.”
###
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 12,400 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.