%1

Alexandria, Va. —Despite the financial services industry’s goal that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) would improve unsecured creditor recoveries in consumer bankruptcy cases, an American Bankruptcy Institute Endowment-funded study finds that recoveries in fact declined. Prof. Lois Lupica of the University of Maine School of Law, who also authored the ABI Endowment-funded Consumer Bankruptcy Fee Study in 2011, was the reporter and principal investigator for "The Consumer Bankruptcy Creditor Distribution Study" to examine creditor recoveries before and after the enactment of BAPCPA. Prof. Lupica also set out to discover whether consumers are able to repay a larger percentage of their unsecured debts under BAPCPA. “Our analysis reveals BAPCPA does not appear to have achieved the primary objective of its proponents, as unsecured distributions as a percentage of unsecured claims declined nationally by a statistically significant 3.2 percentage points in the post-BAPCPA time period,” Prof. Lupica writes in the findings. “Moreover, unsecured distributions as a percentage of total distributions declined by 2.5 percentage points, a result that was also statistically significant.” To access a copy of the study, please click here. Analyzing data extracted from chapter 7 and 13 consumer bankruptcy cases filed nationally between 2003 and 2009, Prof. Lupica was able to compare creditor distributions for consumer cases filed under chapter 13 during pre-BAPCPA and post-BAPCPA time periods. In light of the significant increase in access costs and the fact that in many cases some or all of the chapter 13 and all of the chapter 7 attorney’s fee is paid post-petition from estate assets, Prof. Lupica found that creditors received lower distributions as a percentage of their claims under both chapter 13 and in chapter 7 asset-cases post-BAPCPA. For more information about ABI’s “Consumer Bankruptcy Creditor Distribution Study” or to arrange an interview with Prof. Lupica, please contact John Hartgen at 703-894-5935 or jhartgen@abiworld.org. ### 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 13,000 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.abi.org. For additional conference information, visit the Events page.

Contact: John Hartgen

            

703-894-5935

            

jhartgen@abiworld.org

CONSUMER BANKRUPTCY FILINGS DOWN 10 PERCENT
THROUGH NINE MONTHS OF 2011

October 4, 2011, Alexandria, Va. — U.S.
consumer bankruptcy filings totaled 1,044,722 nationwide during the
first nine months of 2011 (Jan. 1-Sept. 30), a 10 percent decrease from
the 1,165,172 total consumer filings during the same period a year ago,
according to the American Bankruptcy Institute (ABI), relying on data
from the National Bankruptcy Research Center (NBKRC). September consumer

bankruptcies decreased 17 percent nationwide from September 2010 as the
data showed that the overall consumer filing total for September reached

108,517 down from the 130,329 consumer filings recorded in September
2010.

 

“The trend of declining filings has been consistent with consumers

continuing to reign in their spending, household debt, and an overall
pull back in consumer credit,” said ABI Executive Director
Samuel J. Gerdano. “Total consumer filings for
2011 will be less than 2010.”

 

The September 2011 filings also represented a 4 percent decrease from
the August 2011 consumer bankruptcy total of 113,432 filings, a slight
change that could be the result of one less day in the month. The
percentage of chapter 13 filings for September was 30 percent, a one
percent increase from August.

###

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
13,000 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
href='http://www.abiworld.org/'>www.abiworld.org. For additional
conference information, visit

href='http://www.abiworld.org/conferences.html'>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/'>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.

Contact: John Hartgen

            

703-894-5935

            

jhartgen@abiworld.org

CONSUMER BANKRUPTCY FILINGS DOWN 10 PERCENT
THROUGH NINE MONTHS OF 2011

October 4, 2011, Alexandria, Va. — U.S.
consumer bankruptcy filings totaled 1,044,722 nationwide during the
first nine months of 2011 (Jan. 1-Sept. 30), a 10 percent decrease from
the 1,165,172 total consumer filings during the same period a year ago,
according to the American Bankruptcy Institute (ABI), relying on data
from the National Bankruptcy Research Center (NBKRC). September consumer

bankruptcies decreased 17 percent nationwide from September 2010 as the
data showed that the overall consumer filing total for September reached

108,517 down from the 130,329 consumer filings recorded in September
2010.

 

“The trend of declining filings has been consistent with consumers

continuing to reign in their spending, household debt, and an overall
pull back in consumer credit,” said ABI Executive Director
Samuel J. Gerdano. “Total consumer filings for
2011 will be less than 2010.”

 

The September 2011 filings also represented a 4 percent decrease from
the August 2011 consumer bankruptcy total of 113,432 filings, a slight
change that could be the result of one less day in the month. The
percentage of chapter 13 filings for September was 30 percent, a one
percent increase from August.

###

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
13,000 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
href='http://www.abiworld.org/'>www.abiworld.org. For additional
conference information, visit

href='http://www.abiworld.org/conferences.html'>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/'>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.

Contact: John Hartgen

            

703-894-5935

            

jhartgen@abiworld.org

AUGUST CONSUMER BANKRUPTCY FILINGS FALL 11
PERCENT FROM LAST YEAR

September 2, 2011, Alexandria, Va. — August
consumer bankruptcies decreased 11 percent nationwide from August 2010,
according to the American Bankruptcy Institute (ABI), relying on data
from the National Bankruptcy Research Center (NBKRC). The data showed
that the overall consumer filing total for August declined to 113,432,
down from the 127,028 consumer filings recorded in August 2010. Each
month of 2011 has recorded fewer bankruptcies than last year.

 

“Consumer bankruptcies continue to decline over the past year as
households deleverage and consumer credit remains tight,” said ABI

Executive Director Samuel J. Gerdano. “As a
result, total consumer filings will be lower in 2011 than the 1.5
million consumer cases in 2010.”

 

The August 2011 filings also represented a less than a 1 percent
decrease from the July 2011 consumer bankruptcy total of 113,470
filings. The percentage of chapter 13 filings for August was 30 percent,

a one percent increase from July.

###

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
13,000 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
href='http://www.abiworld.org/'>www.abiworld.org. For additional
conference information, visit

href='http://www.abiworld.org/conferences.html'>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/'>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.   

Contact: John Hartgen

            

703-894-5935

            

jhartgen@abiworld.org

AUGUST CONSUMER BANKRUPTCY FILINGS FALL 11
PERCENT FROM LAST YEAR

September 2, 2011, Alexandria, Va. — August
consumer bankruptcies decreased 11 percent nationwide from August 2010,
according to the American Bankruptcy Institute (ABI), relying on data
from the National Bankruptcy Research Center (NBKRC). The data showed
that the overall consumer filing total for August declined to 113,432,
down from the 127,028 consumer filings recorded in August 2010. Each
month of 2011 has recorded fewer bankruptcies than last year.

 

“Consumer bankruptcies continue to decline over the past year as
households deleverage and consumer credit remains tight,” said ABI

Executive Director Samuel J. Gerdano. “As a
result, total consumer filings will be lower in 2011 than the 1.5
million consumer cases in 2010.”

 

The August 2011 filings also represented a less than a 1 percent
decrease from the July 2011 consumer bankruptcy total of 113,470
filings. The percentage of chapter 13 filings for August was 30 percent,

a one percent increase from July.

###

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
13,000 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
href='http://www.abiworld.org/'>www.abiworld.org. For additional
conference information, visit

href='http://www.abiworld.org/conferences.html'>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/'>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.   

Contact: John Hartgen

            

703-894-5935

href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org

JULY CONSUMER BANKRUPTCY
FILINGS FALL 18 PERCENT FROM LAST YEAR

August 2, 2011, Alexandria, Va. -
July consumer bankruptcies decreased 18 percent nationwide from July
2010, according to the American Bankruptcy Institute (ABI), relying on
data from the National Bankruptcy Research Center (NBKRC). The data
showed that the overall consumer filing total for July reached 113,470,
down from the 137,698 consumer filings recorded in July 2010. It was the

seventh straight month of fewer bankruptcies in 2011 than last
year.

'The continued decline in consumer bankruptcies
in tandem with a sluggish economy is a reflection of the deleveraging of

household debts and tightening of consumer credit over the past year,'
said ABI Executive Director Samuel J. Gerdano. 'Should these
trends persist, we expect to see fewer consumer bankruptcies in 2011
than were filed in 2010.'

The July 2011 filings also represented a 5
percent decrease from the June 2011 consumer bankruptcy total of 119,768

filings. The percentage of chapter 13 filings for July was 29 percent, a

one percent increase from June.

###

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 13,000 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
href='http://www.abiworld.org/' target='_blank'>
face='Georgia'>www.abiworld.org. For
additional conference information, visit
href='http://www.abiworld.org/conferences.html' target='_blank'>
color='#0066cc'

face='Georgia'>http://www.abiworld.org/conferences.html

face='Georgia'>.

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/' target='_blank'>
face='Georgia'>http://www.nbkrc.com
face='Georgia'>.

*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. 

Contact: John Hartgen

            

703-894-5935

href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org

JULY CONSUMER BANKRUPTCY
FILINGS FALL 18 PERCENT FROM LAST YEAR

August 2, 2011, Alexandria, Va. -
July consumer bankruptcies decreased 18 percent nationwide from July
2010, according to the American Bankruptcy Institute (ABI), relying on
data from the National Bankruptcy Research Center (NBKRC). The data
showed that the overall consumer filing total for July reached 113,470,
down from the 137,698 consumer filings recorded in July 2010. It was the

seventh straight month of fewer bankruptcies in 2011 than last
year.

'The continued decline in consumer bankruptcies
in tandem with a sluggish economy is a reflection of the deleveraging of

household debts and tightening of consumer credit over the past year,'
said ABI Executive Director Samuel J. Gerdano. 'Should these
trends persist, we expect to see fewer consumer bankruptcies in 2011
than were filed in 2010.'

The July 2011 filings also represented a 5
percent decrease from the June 2011 consumer bankruptcy total of 119,768

filings. The percentage of chapter 13 filings for July was 29 percent, a

one percent increase from June.

###

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 13,000 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
href='http://www.abiworld.org/' target='_blank'>
face='Georgia'>www.abiworld.org. For
additional conference information, visit
href='http://www.abiworld.org/conferences.html' target='_blank'>
color='#0066cc'

face='Georgia'>http://www.abiworld.org/conferences.html

face='Georgia'>.

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/' target='_blank'>
face='Georgia'>http://www.nbkrc.com
face='Georgia'>.

*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. 

Contact: John Hartgen

            

703-894-5935

            

jhartgen@abiworld.org

CONSUMER
BANKRUPTCY FILINGS DOWN 8 PERCENT THROUGH THE FIRST HALF OF
2011

July 5, 2011, Alexandria,
Va. - U.S. consumer bankruptcy filings totaled 709,303
nationwide during the first six months of 2011 (Jan. 1-June 30), an 8
percent decrease from the 770,117 total consumer filings during the same

period a year ago, according to the American Bankruptcy Institute (ABI),

relying on data from the National Bankruptcy Research Center (NBKRC).
The overall June consumer filing total of 119,768 represented a 5
percent decrease from the 126,270 filings recorded in June
2010.

'The drop in bankruptcies for
the first half of the year shows the continued efforts of consumers to
reduce their household debt, and the overall pull back in consumer
credit,' said ABI Executive Director Samuel J.
Gerdano.

The June 2011 filings did
represent a 4 percent increase from the May 2011 consumer bankruptcy
total of 114,803 filings. The percentage of chapter 13 filings for June
was 28 percent, a one percent increase from May.

###

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 13,000 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
color='#0000ff' size='3' face='Times New





Roman'>http://www.abiworld.org/conferences.html

size='3' face='Times New Roman'>.

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.

*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

Contact: John Hartgen

            

703-894-5935

            

jhartgen@abiworld.org

CONSUMER
BANKRUPTCY FILINGS DOWN 8 PERCENT THROUGH THE FIRST HALF OF
2011

July 5, 2011, Alexandria,
Va. - U.S. consumer bankruptcy filings totaled 709,303
nationwide during the first six months of 2011 (Jan. 1-June 30), an 8
percent decrease from the 770,117 total consumer filings during the same

period a year ago, according to the American Bankruptcy Institute (ABI),

relying on data from the National Bankruptcy Research Center (NBKRC).
The overall June consumer filing total of 119,768 represented a 5
percent decrease from the 126,270 filings recorded in June
2010.

'The drop in bankruptcies for
the first half of the year shows the continued efforts of consumers to
reduce their household debt, and the overall pull back in consumer
credit,' said ABI Executive Director Samuel J.
Gerdano.

The June 2011 filings did
represent a 4 percent increase from the May 2011 consumer bankruptcy
total of 114,803 filings. The percentage of chapter 13 filings for June
was 28 percent, a one percent increase from May.

###

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 13,000 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
color='#0000ff' size='3' face='Times New





Roman'>http://www.abiworld.org/conferences.html

size='3' face='Times New Roman'>.

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.

*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

Contact: John Hartgen

            

703-894-5935

href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org

MAY CONSUMER BANKRUPTCY FILINGS FALL 16
PERCENT FROM LAST YEAR

 

June 2, 2011, Alexandria, Va. — May consumer
bankruptcies decreased 16 percent nationwide from May 2010, according to

the American Bankruptcy Institute (ABI), relying on data from the
National Bankruptcy Research Center (NBKRC). The data showed that the
overall consumer filing total for May reached 114,803, down from the
136,142 consumer filings recorded in May 2010.

 

“The continued drop in bankruptcies during 2011 reflects the pull
back in consumer credit over the past year, and a reduction in household

debt,” said ABI Executive Director Samuel J.
Gerdano.

 

The May 2011 filings also represented a 15 percent decrease from the
April 2011 consumer bankruptcy total of 134,720 filings. The percentage
of chapter 13 filings for May was 27 percent, a one percent increase
from April.

 

###

 

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
13,000 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
href='http://www.abiworld.org/'>www.abiworld.org. For additional
conference information, visit

href='http://www.abiworld.org/conferences.html'>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/'>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.