Web posted and Copyright © June 3,
1998, American Bankruptcy Institute.
FOR IMMEDIATE RELEASE
Contact: Mana Zarinejad
Bankruptcy Filings in First Quarter
Increase 6 Percent from Same Period Last Year
ALEXANDRIA, Va.., June 3, 1998 -- Bankruptcy filings for the First Quarter of 1998
totaled 354,118, an almost 6 percent increase from the same three-month period in 1997,
according to statistics released by the Administrative Office of the U.S. Courts.
The number of filings in the 12-month period ending March 31, 1998 increased 14 percent
to 1,423,128 cases over the same time period ending March 31, 1997.
The record number of filings is driven by consumer bankruptcies, which, at 341,708 new
cases, comprised more than 96 percent of all filings in the first quarter. They increased
6.4 percent from the same period in 1997, which totaled 321,242.
The sustained high rate of consumer bankruptcies comes at the same time that Congress
is considering major reform in the bankruptcy laws. The new figures can be expected
to fan the flames of those seeking to restrict access to the bankruptcy courts, said
Samuel J. Gerdano, ABI Executive Director.
Regarding the first quarter consumer filings, chapter 7 filings totaled 244,898
(approximately 71.7 percent of all consumer filings), while chapter 13 filings totaled
96,580 (approximately 28.3 percent of all consumer filings).
Legislation is currently pending in Congress to limit some chapter 7 filings and
promote chapter 13, where more debts are repaid to creditors.
Business filings for the first quarter totaled 12,410, a decrease of 11.5 percent from
the same period in 1997 at 13,831.
*Business filings decreased in the first quarter of 1998
when compared to the same period in 1997.
Top Ten Dsitricts With Highest Percentage Increases in Filings in the 12-Month
Period Ending March 31, 1998 Versus the Identical Period in 1997
|2 Middle District of Pennsylvania
|3 Northern District of West Virginia
|4 District of Utah
|5 District of Maine (tie)
|6 Western District of Pennsylvania
|7 District of Massachusetts
|8 District of Vermont
|9 Southern District of West Virginia
|10 District of Idaho
ABI is the largest multi-disciplinary, non-partisan 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 6,100 attorneys, bankers, judges, professors, turnaround specialists,
accountants and other bankruptcy professionals providing a forum for the exchange of ideas
and information. For more information on ABI, visit ABI World at http://www.abiworld.org.
And for information and statistics collected specifically for the media, visit http://www.abiworld.org/media/media.html.
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