Contact: John Hartgen
703-739-0800
APRIL
CONSUMER BANKRUPTCY FILINGS INCREASE NEARLY 48 PERCENT OVER PREVIOUS
YEAR
May 2, 2008,
size='3'>Alexandria
w:st='on'>
size='3'>Va.
size='3'>U.S.
size='3'>consumer bankruptcy filings increased 47.7 percent nationwide
in April from the same period a year ago, according to the American
Bankruptcy Institute (
size='3'>ABI
from the National Bankruptcy Research Center (NBKRC). The overall April
consumer filing total of 92,291 also represented a 7.1 percent increase
from the 86,165 filings in March. Chapter 13 filings constituted 31.14
percent of all consumer cases in April, a slight decrease from
March.
“The sharp spike in
consumer bankruptcies reflects the growing financial stress faced by
American families, saddled with household debt and mortgage woes,”
said
size='3'>ABI
Samuel J. Gerdano. “We expect consumer bankruptcies to top 1
million new cases this year'.
###
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
title='blocked::http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
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
href='http://www.nbkrc.com/'>
color='#0000ff' size='3'>http://www.nbkrc.com
face='Times New Roman' size='3'>.
size='3'>*Definitions from Bankruptcy
Overview: Issues, Law and Policy
size='3'>, 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.
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.
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.
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.
Tuesday, November 19, 2013 /sites/default/files/collier/2010/April/aprilweek4.pdf /sites/default/files/collier/2010/April/aprilweek4.pdfContact: John Hartgen
703-739-0800
TOTAL
BANKRUPTCY FILINGS INCREASE NEARLY 38 PERCENT IN 2007
size='3'>April 15, 2008
size='3'>Alexandria
w:st='on'>Va.
— Total bankruptcy filings in the
increased 37.8 percent last year over calendar year 2006,
according to data released today from the Administrative Office of the
U.S. Courts (AOUSC). Bankruptcy filings totaled 850,912 for the 12-month
period ending Dec. 31, 2007, a significant increase over the previous
year’s total of 617,660. While the total filings for calendar year
2006 reflected a significant drop due to the implementation of the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the
2007 filing totals mark an increase across all chapters of the
Bankruptcy Code for both consumer and business filings from the previous
year.
“The latest figures
ratify trends that began last year, depicting households under growing
stress from heavy consumer debts, now in homes they can’t afford
and can’t sell,” said
face='Times New Roman' size='3'>ABI
size='3'>Executive Director Samuel J. Gerdano.
Business bankruptcies
recorded the sharpest percentage increase as the 28,322 business filings
during calendar year 2007 represented a 43.8 percent increase in filings
from the record low of 19,695 filings made during the 12-month period
ending Dec. 31, 2006. While the 12-month business filing total for 2007
was still lower than any year prior to 2006, the 2007 total was trending
towards the 35,293 business filings averaged annually for the past
decade (1998-2007).
Consumer filings
rebounded to 822,590 during the 2007 calendar year, representing a 37.6
percent increase over the 597,965 recorded during the same period in
2006. The 500,613 consumer chapter 7 filings
during the 12-month period ending Dec. 31, 2007, comprised 60.9 percent
of the total consumer filings for the 2007 calendar year. The chapter 7
total for 2007 represented a 43.4 percent increase over the 349,012
consumer chapter 7 filings during 2006.
The
321,359 consumers who filed for chapter 13 during the 12-month period
ending Dec. 31, 2007, comprised 39.1 percent of the overall consumer
filing total. The chapter 13 total for 2007 represents a 29.4 percent
increase over the 248,430 consumer chapter 13 filings during
2006.
The 226,413 total bankruptcies
recorded during the fourth calendar quarter of 2007 (Oct.1-Dec. 31)
represent a 27.5 percent increase from the 177,599 filings during the
same period in 2006. The 2007 fourth calendar quarter filing total was
the highest of any previous quarter for 2007 and represented a 3.4
percent increase over the third quarter (July 1 – Sept. 30) total
of 218,909.
The 218,428 consumer filings in
the fourth quarter of 2007 represent a 27 percent increase in comparison
to the 172,013 consumer filings for the same quarter of 2006. The
consumer filing total for the fourth calendar quarter also represented a
3.2 percent increase from the previous total of 211,742 filings from the
third quarter of 2006.
Business filings, which totaled
7,985 for the fourth calendar quarter of 2007, represented a 43 percent
increase from the 5,586 filed in the same 3-month period in 2006 (Oct.
1-Dec. 31). Business filings also rose over the previous quarter as the
fourth calendar quarter represented a 11.4 percent increase over 7,167
business filings reported during the third quarter of 2007 (July 1-
Sept. 30).
The chapter* breakdown
of BUSINESS
filings for the 3-month period ending Dec.31, 2007, is
5,420 chapter 7s, 1,612 chapter 11s, 77 chapter 12s and 869 chapter
13s.
The chapter breakdown
of
size='3'>NONBUSINESS filings for the 3-month
period ending Dec. 31, 2007, is 132,192 chapter 7s, 181 chapter 11s and
86,055 chapter 13s.
States with the HIGHEST PER CAPITA
FILING RATE (Total Filings) for the 12-month period ending Dec. 31,
2007:
1. Tennessee
2. Georgia
3. Alabama
4. Indiana
5. Michigan
6. Ohio
7. Nevada
8. Arkansas
9. Kentucky
10. Mississippi
Districts with the HIGHEST PERCENTAGE
INCREASE in Total Filings for the 12-month period ending Dec. 31, 2007
(compared to the identical period in 2006):
size='3'>1.
District of Nevada:
98.5%
size='3'>2.
Eastern District
of California: 93.6%
size='3'>3.
Central District
of
face='Times New Roman'
size='3'>California
91.2%
size='3'>4.
Southern District
of California: 82.9%
size='3'>5.
District of Maine:
74.2%
Districts with the LOWEST PERCENTAGE
INCREASE in Total Filings for the 12-month period ending Dec. 31, 2007
(compared to the identical period in 2006):
size='3'>1.
District of the
Islands
size='3'>2.
District of the
Mariana Islands
0.0%
size='3'>3.
District of Montana:
1.8%
size='3'>4.
Western District of
size='3'>North Carolina
8.9%
size='3'>5.
Middle District of
size='3'>North Carolina
size='3'>: 11.3%
More information will be
available at
href='http://www.abiworld.org/Content/NavigationMenu/Online_Resources/Bankruptcy_Statistics/ABI_-_Bankruptcy_Statistics.htm'>
face='Times New Roman' color='#0000ff' size='3'>ABI’s Statistics
Page,
href='http://www.abiworld.org/statistics'>
color='#0000ff'
size='3'>http://www.abiworld.org/statistics
face='Times New Roman' size='3'>.
###
face='Times New Roman' size='3'>ABI
size='3'>is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to
insolvency.
was founded in 1982 to provide Congress and the public
with unbiased analysis of bankruptcy issues. The
w:st='on'>
size='3'>ABI
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
face='Times New Roman' size='3'>ABI
size='3'>, visit www.abiworld.org. For additional conference
information, visit
href='http://www.abiworld.org/conferences.html'>
size='3'>http://www.abiworld.org/conferences.html
face='Times New Roman' size='3'>.
size='3'>*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.
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.
Tuesday, April 15, 2008
Contact: John Hartgen
703-894-5935
MARCH
CONSUMER BANKRUPTCY FILINGS REACH HIGHEST MONTHLY TOTAL SINCE 2005
BANKRUPTCY OVERHAUL
April 2, 2010 Alexandria,
Va. —The 149,268 consumer bankruptcies filed in March
represented the highest monthly consumer filing total since Congress
overhauled the Bankruptcy Code in 2005, according to the American
Bankruptcy Institute (ABI) relying on data from the National Bankruptcy
Research Center (NBKRC). The March filing total represented a 34 percent
increase from the February filing total of 111,693 and a 23
percent increase from March 2009 total of 121,413. Chapter 13 filings
constituted 25 percent of all consumer cases in March, representing a 2
percent decrease from February.
“The sustained economic
pressures of unemployment coupled with high pre-existing debt burdens
are a formula for consumer filings to surpass 1.5 million
filings,” said ABI Executive Director Samuel J. Gerdano.
“As consumers continue to look to bankruptcy for financial
shelter, annual filings will likely equal those averaged in the years
leading up to the Bankruptcy Abuse Prevention and Consumer Protection
Act of 2005.”
###
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
12,600 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
face='Times New Roman'>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
color='#0000ff' face='Times New
Roman'>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.
Friday, April 2, 2010
Contact: John Hartgen
703-894-5935
TOTAL BANKRUPTCY FILING GROWTH RATE SLOWS TO 8
PERCENT IN 2010, BUSINESS FILINGS FALL 7.5 PERCENT
February 15, 2011 Alexandria, Va. — Total
bankruptcy filings in the United States increased 8 percent in 2010 over
calendar year 2009, according to data released today from the
Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings
totaled 1,593,081 for the 12-month period ending Dec. 31, 2010, over the
previous year’s total of 1,473,675. Total filings have steadily
increased since the implementation of the Bankruptcy Abuse Prevention
and Consumer Protection Act of 2005 (BAPCPA). Total bankruptcies reached
2,078,415 in advance of the 2005 changes to the Bankruptcy Code.
“After three consecutive years of double-digit increases in
total filings, the slowing of the growth rate of bankruptcies reflects a
retrenchment in consumer spending associated with a down U.S.
economy,” said ABI Executive Director Samuel J.
Gerdano.
The 1,536,799 consumer filings during the 2010 calendar year
represented a 9 percent increase over the 1,412,838 filings recorded
during the same period in 2009. The consumer chapter 7 total of
1,100,116 filings during the 12-month period ending Dec. 31, 2010,
represented a 9 percent increase over the 1,008,870 consumer chapter 7
filings during all of 2009. The consumer chapter 7 filings comprised 72
percent of the total consumer filings for the 2010 calendar year, up
slightly from the previous year. The percentage of consumers filing
under chapter 7 has increased each year since BAPCPA was implemented at
the end of 2005.
The 434,739 consumers who filed for chapter 13 during the 12-month
period ending Dec. 31, 2010, comprised 28 percent of the overall
consumer filing total. The consumer chapter 13 total for 2010 represents
an 8 percent increase over the 402,462 consumer chapter 13 filings
during 2009.
While total and consumer bankruptcies continued to increase in 2010,
business filings decreased by 7.5 percent. Business bankruptcies
decreased to 56,282 filings during calendar year 2010 from the 60,837
filings made during the 12-month period ending Dec. 31, 2009. Chapter 11
business filings decreased the most in calendar year 2010, falling 14
percent to 11,774 from the 13,683 recorded in 2009.
The only business bankruptcy chapter to experience an increase in
2010 was chapter 12, which is designed to give special debt relief to
family farmers and fishermen. Chapter 12 business filings increased 33
percent to 723 bankruptcies during the 12-month period ending Dec. 31,
2010 from the 544 filings recorded in 2009. The 2010 chapter 12 business
bankruptcies represent the highest total since the 834 filings
registered during the 12-month period ending Dec. 31, 1999.
The 370,080 total bankruptcies recorded during the fourth calendar
quarter of 2010 (Oct.1-Dec. 31, 2010) represent a 1 percent decrease
from the 372,203 filings during the same period in 2009. The fourth
quarter 2010 filing total also represents a 10 percent decrease over the
third quarter (July 1 – Sept. 30, 2010) total of 412,380.
The 357,050 consumer filings in the fourth quarter of 2010 represent
a 0.4 percent decrease in comparison to the 357,183 consumer filings for
the same quarter of 2009. Mirroring the overall filing total, the
consumer filings in the fourth calendar quarter represented a 10 percent
decrease from the third quarter 2010 total of 398,423 consumer
filings.
Business filings, which totaled 13,030 for the fourth calendar
quarter of 2010, represented a 13 percent decrease from the 15,020 filed
in the same three-month period in 2009 (Oct. 1-Dec. 31). Business
filings in the fourth quarter of 2010 decreased 7 percent from the
13,957 business filings reported during the third quarter of 2010 (July
1- Sept. 30).
The chapter* breakdown of BUSINESS filings for the
3-month period ending Dec. 31, 2010, is 9,142 chapter 7s, 2,682 chapter
11s, 164 chapter 12s and 989 chapter 13s.
The chapter breakdown of NONBUSINESS filings for the
3-month period ending Dec. 31, 2010, is 248,526 chapter 7s, 466 chapter
11s and 108,057 chapter 13s.
Districts with the HIGHEST PERCENTAGE INCREASE in Total
Filings for the 12-month period ending Dec. 31, 2010 (compared to the
identical period in 2009):
1. Southern District of Florida: 36.2%
2. Central District of California: 31.4%
3. District of Hawaii: 27.4%
4. District of Utah: 24.6%
5. District of Arizona: 23.7%
Districts with the HIGHEST PERCENTAGE DECREASE in Total
Filings for the 12-month period ending Dec. 31, 2010 (compared to the
identical period in 2009):
1. District of the Guam: -21.7%
2. District of the Virgin Islands: -17.2%
3. Eastern District of Tennessee: -10.5%
4. Northern District of West Virginia:
-10.3%
5. Western District of New York: -9.9%
More information will be available at ABI’s Statistics Page,
href='http://www.abiworld.org/statistics'>http://www.abiworld.org/statistics.
###
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
nearly 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.
*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:
Hartgen
Phone: 703-739-0800
Email: jhartgen@abiworld.org
Total Bankruptcies
Eclipse the 2 Million Mark in 2005 as Consumers File in Record Numbers
Prior to Implementation of New Bankruptcy Law
March 24, 2006 Alexandria, Va.
— Bankruptcy filings eclipsed the two million mark for the first
time in the
States
reported in calendar year 2005, according to data from the
Administrative Office of the U.S. Courts. The total in this 12-month
period ending December 31, 2005, represents a record 30 percent increase
compared with the 1,597,462 total filings for the same period in
2004.
Driven largely in response to the
passage of the Bankruptcy Abuse Prevention and Consumer Protection Act
(BAPCPA), consumers provided 98 percent of the overall total filings,
the highest concentration of consumer filings on record, as nonbusiness
filings during the 12-month period ending December 31, 2005, increased
to a record 2,039,214, which was a 31 percent increase from the total of
1,563,145 of the same period in 2004. Business filings also increased to
39,201 for the 12-month period ending December 31, 2005, representing a
14 percent increase from the total of 34,317 from same period in 2004.
This is the highest total of business bankruptcies in a calendar year
since 2001’s total of 40,099.
“It is ironic that,
at least in the short term, a law Congress hoped would reduce
bankruptcies instead caused the largest upward spike in history,”
said Samuel J. Gerdano, ABI Executive Director.
size='3'> “Bankruptcies have in fact
fallen dramatically so far in 2006 under the new, more-restrictive
law,” he added.
The record high of 667,431 bankruptcies
recorded during the 4th calendar quarter of 2005 (October 1-December 31,
2005), is representative of the many debtors who rushed to file prior to
the Oct. 17 implementation date of BAPCPA. October 2005 filings alone
totaled 630,497, representing 95 percent of the filings for the
three-month period and 30 percent of the 12-month period ending December
31, 2005. Nonbusiness filings in October 2005 reached 619,588, which
represented 30 percent of the nonbusiness filings for the 12- month
period ending December 31, 2005, and 95 percent of the 654,633 total
nonbusiness filings for the 4th quarter of 2005. The 10,909
October business filings were representative of 28 percent of the
12-month period ending December 31, 2005 business filings and 85 percent
of the 12,798 business filings for the 4th quarter
2005.
Largely as a result of the BAPCPA,
dramatic decreases in filings were seen during the months of November
and December 2005 as the combined filings of 36,934 for those two months
represented just 1.78 percent of the total 12-month period ending
December 31, and 6 percent for the 4th quarter 2005.
November’s total filings dropped to 14,324, which represented less
than one percent (0.69%) of the total for the 12-month period ending
December 2005 and 2 percent of the 4th quarter total. The
total of 13,643 nonbusiness filings in November was representative of
less than one percent of the total nonconsumer filings (0.67%) for the
12-month period ending December 31, 2005 and just 2 percent of the
4th calendar quarter nonbusiness filings. Business filings
experienced a similar decline as the 681 filings in November represented
less than 2 percent (1.74%) for CY2005 and 5 percent of the 2005
4th quarter’s total of 12,798. By comparison, 2004
totals for the month of November were 122,796 total filings, 2,643
business filings and 120,153 nonbusiness filings, each representative of
nearly 8 percent of the 12-month total for their respective
categories.
Total filings increased in December 2005
to 22,610, which represented a 63 percent increase over November total
filings, but just over 1 percent of the 12-month period ending December
31, 2005 total (1.09%) and just over 3 percent (3.39%).for the
4th quarter 2005. December nonbusiness filings reached
21,402, representing just over one percent (1.05%) of the total
nonbusiness filings for the 12-month period ending December 31, 2005,
and only 3 percent of the 4th quarter 2005 nonbusiness
filings. December business filings increased as well to 1,208, but only
comprised 3 percent of the total business filings for the 12-month
period and represented just over 9 percent of the 4th quarter
total business filings. By comparison, 2004 totals for the month of
December were 118,193 total filings, 2,493 business filings and 115,700
nonbusiness filings. Each was representative of just over seven percent
of the 12-month total for their respective categories.
However, the 667,431 filings in the
4th quarter of 2005 (October 1-December 31, 2005) represent
an 80 percent increase in comparison to the 371,668 filings for the same
quarter of 2004 (October 1-December 31, 2004) and a 23 percent increase
from the previous record total 542,002 from the 3rd quarter
of 2005 (July 1- September 30, 2005).
Of the total number of bankruptcy
filings in the 12-month period ending December 31, 2005, there were
1,659,017 chapter 7 filings, a 46 percent increase over the 1,137,958
chapter 7 filings for the same period in 2004. Chapter 7 filings also
increased 33 percent from the 2005 third quarter from 429,299 to 570,355
in the 2005 fourth quarter.
The next-largest group of filings in the
12-month period ending December 31, 2005, was chapter 13 at 412,130, a 9
percent decrease from the 449,129 filings in the 12-month period ending
December 31, 2004. CY2005 chapter 12 filings totaled 380, a 252 percent
increase from the 108 filings in the 12-month period ending December 31,
2004. Reflecting the strong economy and low interest rates, chapter 11
filings fell from 10,132 in CY2004 to 6,800 in the 12-month period
ending December 31, 2005, a 33 percent decrease.
BUSINESS FILINGS for the
size='3'>3-month period ending December 31, 2005, totaled 12,798,
a 64.54 percent increase from the 7,778 bankruptcy business cases filed
in the same period in 2004. NONBUSINESS FILINGS for the
3-month period ending September 30, 2005, totaled
654,633, an 80 percent increase from the 363,890 total in the same
quarter in 2004.
The chapter* breakdown of
size='3'>BUSINESS filings for the 3-month period ending December
31, 2005, is: 9,701 chapter 7s, 1,692 chapter 11s, 87 chapter 12s and
1,308 chapter 13s.
The chapter breakdown of
size='3'>NONBUSINESS filings for the 3-month period ending
December 31, 2005, is 560,654 chapter 7s, 263 chapter 11s and 93,714
chapter 13s.
Districts with the Highest Percentage
INCREASE in Total Filings for the 12-month period ending December 31,
2005 (compared to the identical period in 2004):
- District of Virgin Islands:
68.42% - Northern District
of Ohio: 57.47% - Southern District of West
Virginia: 57.02% - District of North Dakota:
54.68% - District of Vermont:
54.42%
Districts with the Highest Percentage
DECREASE in Total Filings for the 12-month period ending December 31,
2005 (compared to the identical period in 2004):
- Southern District of Georgia:
9.79% - Middle District
of
face='Times New Roman'
size='3'>Georgia
6.67% - District of Puerto Rico:
0.82% - District of South Carolina:
0.47% (Increase) - Middle District
of
size='3'>: 4.19% (Increase)
More information will be available
at
href='/AM/Template.cfm?Section=Bankruptcy_Statistics&Template=/Content/NavigationMenu/News_Room/Bankruptcy_Statistics1/Bankruptcy_Filings_Statistics.htm'>
face='Times New Roman'>ABI’s Statistics Page
face='Times New Roman'>,
href='/statistics'>http://www.abiworld.org/statistics.
###
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
href='/Content/NavigationMenu/MeetingsEvents/UpcomingEvents/Events_Intro_Page1.htm'>http://www.abiworld.org/conferences.html
face='Times New Roman'>.
*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.
Friday, March 24, 2006
Contact:
Hartgen
(703) 739-0800
color='#0000ff'>jhartgen@abiworld.org
FIRST QUARTER
BANKRUPTCY FILINGS FALL TO LOWEST LEVELS SINCE 1985
May 26, 2006,
size='3'>Alexandria
w:st='on'>
size='3'>Va.
size='3'>The total number of
w:st='on'>
size='3'>U.S.
size='3'>bankruptcies filed during the first three months of 2006 were
the lowest on record in more than 20 years as filings fell to 116,771,
according to data released today by the Administrative Office of the
U.S. Courts. The total filings for the first calendar year quarter of
2006 (January 1-March 31, 2006) have not been experienced since the 1985
fourth calendar year quarter (October 1-December 31, 1985), when
bankruptcy filings totaled 114,021. The 2006 first quarter calendar year
filings also represent a 82.5 percent drop in filings from the previous
quarter (October 1-December 31, 2005) when 667,431 new cases were filed.
It is also represents a 70.89 percent drop compared to the 401,149 total
filings for the same three-month period ending March 31,
2005.
A new bankruptcy law went into
effect on October 17, 2005. The new law requires that consumers first go
through credit counseling before being eligible for bankruptcy. The new
law also reduces the scope of bankruptcy relief.
“Congress hoped the new
law would reduce the number of new consumer bankruptcies and the latest
figures reflect that intention, though there are still many families
under financial stress,” said Samuel J. Gerdano, ABI Executive
Director. “We haven’t seen numbers this low since the
mid-1980’s, when a gallon of gasoline was $1.20.”
Consumer filings represented
the largest drop-off as they decreased 82.79 percent to 112, 685 for the
three-month period ending March 31, 2006 from 654,633 the previous
three-month period ending December 31, 2005. They also represent a 71.33
percent decrease from the same period in 2005, which had a total of
393,086 nonbusiness filings.
Business filings for the
three-month period ending March 31, 2006 also experienced significant
decreases as the total of 4,086 filings were down 68.02 percent from the
2005 fourth quarter total of 12,798 and 49.32 percent from the 8,063
business cases filed in the same quarterly period of 2005.
However, total filings
increased for each month of the three-month period ending March 31,
2006, as nearly half of the total filings (44.26 percent) occurred in
the month of March with 51,683 filings. January 2006 totaled 28,368
filings, while 36,720 total filings were recorded for February 2006. The
steady increase was in stark contrast to the previous quarter’s
steep monthly drop due to the October 17, 2005, implementation of the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
(BAPCPA). Filings fell from a high of 630,468 in October 2005 to 14,480
for November 2005 and 22,927 for December 2005.
The total filings for the
12-month period ending March 31, 2006 were sustained by the surge of
debtors filing for bankruptcy before the October 2005 implementation of
BAPCPA. Total filings rose 12.81 percent to 1,794,795 compared to
1,590,975 bankruptcy cases filed in the 12-month period ending March
2005. Prior to the March 2006 12-month reporting period, bankruptcy
filings rose 30 percent in the 12-month period ending December 31, 2005,
which was also attributable to the rush prior to BAPCPA’s
implementation.
Nonbusiness filings for the
12-month period ending March 31, 2006, totaled 1,759,503, up 12.86
percent from the 1,559,023 total nonbusiness filings in the 12-month
period ending March 31, 2005. Business filings for the 12-month period
ending March 31, 2006, totaled 35,292, up 10.45 percent from the 31,952
bankruptcy petitions filed in the 12-month period ending March 31,
2005.
Chapter 7 filings rose to
1,432,074 for the 12-month period ending March 31, 2006, representing a
25.43 percent increase from the 1,141,715 filings from the same period
in 2005. Chapter 13 filings fell 19.48 percent, to 355,756 in the
12-month period ending March 31, 2006 from 441,838 in the same period
last year. Chapter 11 filings also declined, falling 8.69 percent to
6,497 in 2006 from 7,115 in 2005. Chapter 12 filings rose 93.65 percent
from 189 in 2005 to 366 in 2006.
size='3'>BUSINESS FILINGS for the 3-month
period ending March 31, 2006, totaled 4,086, down 49.32 percent from the
8,063 bankruptcy business cases filed in the same period in 2005.
NON-BUSINESS FILINGS
for the 3-month period ending March 31, 2006, decreased
71.33 percent from 393,086 in 2005 to 112,685 in 2006.
The chapter* breakdown
of BUSINESS
filings for the 3-month period ending March 31, 2006, is:
2,147 chapter 7s, 1,291 chapter 11s, 84 chapter 12s and 540 chapter
13s.
The chapter breakdown
of
size='3'>NON-BUSINESS filings for the 3-month
period ending March 31, 2006, is: 63,250 chapter 7s, 121 chapter 11s and
49,314 chapter 13s.
Districts with the Highest
Percentage INCREASE in Total Filings for the 12-month period ending
March 31, 2006 (compared to the identical period in
2005):
- District of Vermont:
39.76%
- Northern District of Indiana:
35.86%
- District of Alaska:
35.10%
size='3'>
- Northern District of Ohio:
33.76
- Western District
of
w:st='on'>Oklahoma
Districts with the Highest
Percentage DECREASE in Total Filings for the 12-month period ending
March 31, 2006 (compared to the identical period in
2005):
- Southern District of Georgia:
19.32%
- Middle District
of
face='Times New Roman'
size='3'>Georgia
17.14%
- Southern District of
Alabama: 15.02%
- District of South
Carolina: 14.93%
size='3'>
- District of Utah:
12.05%
###
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 11,500 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'>.
size='3'>*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.
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.
Friday, May 26, 2006
Contact:
Hartgen
(703) 739-0800
color='#0000ff'>jhartgen@abiworld.org
BANKRUPTCY
FILINGS DURING FIRST HALF OF 2006 FALL TO LOWEST LEVELS SINCE
1986
August 28,
2006,
size='3'>Alexandria
w:st='on'>
size='3'>Va.
size='3'>The total number of U.S. bankruptcies filed during the first
six months of 2006 were the lowest first-half calendar year filings on
record in 20 years, as filings for the period from Jan. 1 – June
30, 2006 fell to 272,604 from 868,482, the total number of filings for
the same period in 2005, according to data released today by the
Administrative Office of the U.S. Courts. When combined, the 2006
second-quarter (April
1 – June 30) bankruptcy filings total of 155,833 and the
first-quarter (Jan. 1 – March 31, 2006) filings total of 116, 771
represent the lowest number of calendar filings for the first six months
of a year since the first half of 1986, when bankruptcy filings totaled
258,311. The 2006 first-half filings also represent a 68.61 percent drop
in filings from the previous year’s first-half filings (Jan.
1-June 30, 2005), when 868,482 bankruptcies were filed. The 2006
second-quarter filings also represent a 66.65 percent drop compared with
the 467,333 total filings for the same three-month period ending June
30, 2005.
Total consumer filings for the
six-month period from Jan. 1 – June 30, 2006 were 263,660,
representing a 69.04 percent decrease from the same period in 2005, in
which consumer filings totaled 851,683. The 8,944 business filings from
Jan. 1 – June 30, 2006, represented a 46.76 percent decrease from
the same period the previous year, in which 16,799 business filings were
recorded.
Due in large part to the new
requirements of the Bankruptcy Abuse Protection and Consumer Protection
Act of 2005 (BAPCPA), the type of consumer bankruptcies filed in the
first half of 2006 shifted considerably from the first half of 2005.
Chapter 13 filings represented 41.15 percent of all consumer filings in
the six-month period ending June 30, 2006, up from 24.15 percent during
the same period of 2005. Conversely, the percentage of consumer chapter
7 filings fell to 58.76 percent of total consumer filings in the
six-month period ending June 30, 2006, from 75.81 percent in the first
calendar half of 2005.
The 1,484,570 total filings
during the 12-month period ending June 30, 2006, represent the lowest
number of filings in a 12-month period since the 12-month period ending
Sept. 30, 2001, when there were 1,437,354 filings. Total filings
decreased from the 1,794,795 filings reported for the 12-month period
ending March 31, 2006.
Nonbusiness filings for the
12-month period ending June 30, 2006, fell 9.46 percent to 1,453,008
from the 1,604,848 total nonbusiness filings in the 12-month period
ending June 30, 2005. The 31,562 total business filings for the 12-month
period ending June 30, 2006 represented a 2.6 percent decrease from the
32,406 bankruptcy petitions filed in the 12-month period ending June 30,
2005.
Chapter 13 filings fell 29.48
percent to 313,085 in the 12-month period ending June 30, 2006, from
443,945 in the same period last year. Chapter 11 filings also declined,
falling 7.15 percent to 6,224 in the 12-month period ending June 30,
2006, from 6,703 in 2005. Conversely, chapter 12 filings rose 24.14
percent from 290 in the 12-month period ending June 30, 2005, to 360 in
2006.
size='3'>BUSINESS FILINGS for the three-month
period ending June 30, 2006, totaled 4,858, down 44.39 percent from the
8,736 bankruptcy business cases filed in the same period in 2005.
NONBUSINESS FILINGS
for the three-month period ending June 30, 2006,
decreased 67.08 percent from 458,597 in the same period in 2005 to
150,975.
The chapter* breakdown
of BUSINESS
filings for the three-month period ending June 30, 2006,
is: 2,940 chapter 7s, 1,079 chapter 11s, 99 chapter 12s and 729 chapter
13s.
The chapter breakdown
of
size='3'>NONBUSINESS filings for the
three-month period ending June 30, 2006, is: 91,674 chapter 7s, 131
chapter 11s and 59,170 chapter 13s.
Districts with the Highest
Percentage INCREASE in Total Filings for the 12-month period ending June
30, 2006 (compared to the identical period in 2005):
- District of Vermont:
11.86%
- Northern District of Indiana:
10.63%
- District of Alaska:
8.71%
size='3'>
- District of the
Mariana Islands
7.14%
- District of Nevada:
5.98%
Districts with the Highest
Percentage DECREASE in Total Filings for the 12-month period ending June
30, 2006 (compared to the identical period in 2005):
- Eastern District of Louisiana:
33.96%
- District of Utah:
31.92%
- Southern District of
Georgia: 29.88%
size='3'>
- Southern District of
Alabama: 29.67%
- Middle District
of
face='Times New Roman'
size='3'>Georgia
28.79%
###
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 11,500 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'>.
*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.
Monday, August 28, 2006
Contact:
Hartgen
(703) 739-0800
color='#0000ff'>jhartgen@abiworld.org
BANKRUPTCY
FILINGS DURING FIRST THREE QUARTERS OF 2006 DROP OFF NEARLY ONE MILLION
FROM PREVIOUS YEAR
size='3'>December 5, 2006, Alexandria, Va.—
size='3'>The total number of U.S. bankruptcies filed during the first
three quarters of 2006 (Jan. 1 – Sept. 30, 2006) fell to 443,750
from 1,410,484 for the same period in 2005, according to data released
today by the Administrative Office of the U.S. Courts. The combined
total of the first three quarters of 2006 (Jan. 1- Sept. 30) represent
the lowest number of calendar filings for the first nine months of a
year since the first three quarters of 1987, when bankruptcy filings
totaled 432,821 during a similar calendar period. The filings for the
first three calendar quarters of 2006 also represent a 68.54 percent
drop in filings from the previous year’s three quarter filings
(Jan. 1-Sept. 30, 2005), when 1,410,484 bankruptcies were
filed.
“On the eve of a Senate
oversight hearing on the new bankruptcy law, today’s numbers
confirm that we are seeing filing levels not present since the
1980’s,” said Samuel J. Gerdano, ABI Executive Director.
“Congress clearly wanted to reduce filings, but only time will
tell if the 2006 trend is sustainable,” he concluded.
The 2006 third quarter (July
1-Sept. 30, 2006) filing total of 171,146 also represents a 68.42
percent drop compared with the 542,002 total filings for the same
three-month period ending Sept. 30, 2005. The 1,112,542 total filings
during the 12-month period ending Sept. 30, 2006, represent the lowest
number of filings in a 12-month period since the 12-month period ending
Sept. 30, 1996, when there were 1,111,964 filings. Total filings
decreased from the 1,782,643 filings reported for the 12-month period
ending June 30, 2005.
Total consumer filings for the
nine-month period from Jan. 1 – Sept. 30, 2006, were 429,522,
representing a 68.97 percent decrease from the same period in 2005, in
which consumer filings totaled 1,384,209. The 14,228 business filings
from Jan. 1 – Sept. 30, 2006, represented a 45.85 percent decrease
from the same period the previous year, in which 26,275 business filings
were recorded.
Due in large part to the
new requirements of the Bankruptcy Abuse Protection and Consumer
Protection Act of 2005 (BAPCPA), the type of consumer bankruptcies filed
in the first nine months of 2006 shifted considerably from the first
nine months of 2005. Chapter 13 filings represented 41.39 percent of all
consumer filings in the nine-month period ending Sept. 30, up from 22.79
percent during the same period of 2005. Conversely, the percentage of
consumer chapter 7 filings fell to 58.52 percent of total consumer
filings in the nine-month period ending Sept. 30, 2006, from
77.16 percent during
the first three calendar quarters of 2005.
Nonbusiness filings for the
12-month period ending Sept. 30, 2006, fell 37.9 percent to 1,085,209
from the 1,748,421 total nonbusiness filings in the 12-month period
ending Sept. 30, 2005. The 27,333 total business filings for the
12-month period ending Sept. 30, 2006, represented a 20.13 percent
decrease from the 34,222 bankruptcy petitions filed in the 12-month
period ending Sept. 30, 2005.
Total chapter 7 filings fell
38.11 percent to 833,147 in the 12-month period ending Sept. 30, 2006,
from 1,346,201 in the same period last year. Chapter 13 filings fell
36.43 percent to 272,937 in the 12-month period ending Sept. 30, 2006,
from 429,316 in the same period last year. Chapter 11 filings also
declined, falling 9.55 percent to 6,003 in the 12-month period ending
Sept. 30, 2006, from 6,637 in 2005. Conversely, chapter 12 filings rose
slightly from 364 in the 12-month period ending Oct. 31, 2005, to 376 in
2006.
size='3'>BUSINESS FILINGS for the three-month
period ending Sept. 30, 2006, totaled 5,284, down 44.24 percent from the
9,476 bankruptcy business cases filed in the same quarter in
2005. NONBUSINESS
FILINGS for the three-month period ending
Sept. 30, 2006, decreased 68.85 percent from 532,526 in the same period
in 2005 to 165,862.
The chapter* breakdown
of BUSINESS
filings for the three-month period ending Sept. 30, 2006,
is: 3,249 chapter 7s, 1,192 chapter 11s, 97 chapter 12s and 716 chapter
13s.
The chapter breakdown
of
size='3'>NONBUSINESS filings for the
three-month period ending Sept. 30, 2006, is: 96,442 chapter 7s, 140
chapter 11s and 69,280 chapter 13s.
NOTE: ALL CIRCUIT DISTRICTS
EXPERIENCED FILING DECREASES FOR THE 12 MONTH PERIOD ENDING SEPT. 30,
2006 WHEN COMPARED TO THE IDENTICAL PERIOD IN 2005.
Districts with the LOWEST
PERCENTAGE DECREASE in Total Filings for the 12-month period ending
Sept. 30, 2006 (compared to the identical period in
2005):
- District of the
Islands
- District of Vermont:
23.10%
- Northern District of
Indiana: 26.32%
- Eastern District of Michigan:
28.07%
- Western District
of
size='3'>: 29.64%
Districts with the HIGHEST
PERCENTAGE DECREASE in Total Filings for the 12-month period ending
Sept. 30, 2006 (compared to the identical period in
2005):
- Eastern District of Louisiana:
51.78%
- District of Utah:
51.41%
- District of Arizona:
50.92%
size='3'>
- District of New Mexico:
49.10%
size='3'>
- Northern District of West
Virginia: 45.76%
###
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 11,500 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'>.
*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.
Tuesday, December 5, 2006
Contact: John Hartgen
(703) 739-0800
2006
BANKRUPTCIES FALL TO LOWEST LEVELS SINCE 1980s
size='3'>April 17, 2007
size='3'>—Bankruptcy filings in the
w:st='on'>
size='3'>United States
size='3'>dropped to their lowest level since 1988 as calendar year 2006
filings plunged following the implementation of the new bankruptcy law
in 2005, according to data from the Administrative Office of the U.S.
Courts (AOUSC). One year after the Bankruptcy Abuse Prevention and
Consumer Protection Act of 2005 (BAPCPA) was implemented on Oct. 17,
2005, total bankruptcy filings for calendar year 2006 dropped to
617,660, representing the lowest filing total since 613,465 total
filings were recorded for the 12-month period ending Dec.31, 1988. The
total filings for the 12-month period ending Dec. 31, 2006, represent a
70.28 percent decrease compared with the record total of 2,078,415
filings for the same period in 2005.
Consumer bankruptcies
recorded the sharpest decrease; the 597,965 consumer filings during
calendar year 2006 represented a 70.68 percent drop in filings from the
record 2,039,214 filings made during the 12-month period ending Dec. 31,
2005. The 12-month filing total for 2006 was the lowest since the
549,612 filings were recorded for the
size='3'>12-month period ending Dec. 31,
1988.
'The final government
statistics merely confirm what all in the bankruptcy world had already
experienced: a historic drop-off in 2006 activity almost entirely due to
the after-effect of the 2005 law changes,' said ABI Executive Director
Samuel J. Gerdano. 'But as the debt burden on the household sector
remains high, most expect consumer bankruptcies to bounce back by the
end of this year,' he said.
While the number of
consumer filings reached their lowest point since 1988, the 2006
calendar year consumer filings revealed a noticeable shift in the type
of bankruptcies being filed by consumers. Largely the result of stricter
requirements under BAPCPA, the 248,430 chapter 13
cases filed for the 12-month period ending Dec. 31, 2006, represented
41.55 percent of the overall consumer filing total. The 349,012
consumers who filed for chapter 7 during the 12-month period ending Dec.
31, 2006, comprised 58.37 percent of the total consumer filings for the
2006 calendar year. The filing pattern was vastly different from 2005,
when there were 1,631,011 chapter 7 cases filed, representing 79.98
percent of total bankrupt consumer filings, while only 19.97 percent of
consumer cases, representing 407,322 filings, were filed under chapter
13 during the 12-month period ending Dec. 31, 2005.
The 19,695 business filings
during the 12-month period ending Dec. 31, 2006, were the lowest on
record under the current statistics reporting system, which was
implemented in 1980. The previous lowest business filing total for a
12-month period was recorded in 2004, with 34,317 business bankruptcies
filed. The 2006 filing total also represents 49.78 percent decrease from
the 39,201 business bankruptcy filings during the 12-month period ending
Dec. 31, 2005.
The 177,599 total bankruptcies
recorded during the 4th calendar quarter of 2006 (Oct.1-Dec. 31, 2006)
represent a 73.39 percent drop from the 667,431 filings during the
similar period in 2005. Total filings for the month of October
registered a 90.23 percent drop from 2005 as 61,592 filings were
recorded for the month in 2006 as compared to the 630,497 cases that
were filed in October 2005 leading up to the implementation of BAPCPA
that year. Despite the drop-off from the previous year, the 2006 4th
calendar quarter filing total was the highest of any previous quarter
for 2006 and represented a 3.63 percent increase over the 3rd quarter
(July 1 – Sept. 30) total of 171,146.
The 172,013 consumer filings in
the 4th quarter of 2006 represent a 73.72 percent decrease in comparison
to the 654,633 consumer filings for the same quarter of 2005. The
consumer filing total for the 4th calendar quarter did, however,
represent a 3.58 percent increase from the previous total of 165,862
filings from the 3rd quarter of 2006.
Business filings, which totaled
5,586 for the 4th calendar quarter of 2006, represented a 56.35 percent
decrease from the 12,798 filed in the same 3-month period in 2005 (Oct.
1-Dec. 31). Business filings did rise from the previous quarter as the
4th calendar quarter represented a 5.41 percent increase over 5,284
business filings reported during the 3rd quarter of 2006 (July 1- Sept.
30).
The chapter* breakdown
of BUSINESS
filings for the 3-month period ending Dec.31, 2006, is
3,567 chapter 7s, 1,170 chapter 11s, 74 chapter 12s and 763 chapter
13s.
The chapter breakdown
of
size='3'>NONBUSINESS filings for the 3-month
period ending Dec. 31, 2006, is 98,824 chapter 7s, 134 chapter 11s and
73,052 chapter 13s.
Districts with the LOWEST PERCENTAGE
DECREASE in Total Filings for the 12-month period ending Dec. 31, 2006
(compared to the identical period in 2005):
- Western District
of
size='3'>: 45.29% - Southern District
of Georgia: 46.49% - District of the
Mariana Islands
46.88% - Northern District
of Georgia: 51.22% - Middle District
of
size='3'>: 51.68%
Districts with the HIGHEST PERCENTAGE
DECREASE in Total Filings for the 12-month period ending Dec. 31, 2006
(compared to the identical period in 2005):
- Eastern District of Louisiana:
85.14%
- Southern District of West
Virginia: 84.01% - Eastern District of Oklahoma:
83.75% - Western District
of
size='3'>: 81.79% - Northern District of West
Virginia: 81.21%
More information will be
available at
href='http://www.abiworld.org/Content/NavigationMenu/Online_Resources/Bankruptcy_Statistics/ABI_-_Bankruptcy_Statistics.htm'>
face='Times New Roman' color='#0000ff' size='3'>ABI’s Statistics
Page,
href='http://www.abiworld.org/statistics'>
color='#0000ff'
size='3'>http://www.abiworld.org/statistics
face='Times New Roman' size='3'>.
###
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 11,500 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'>.
size='3'>*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.
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.
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.