Contact: John Hartgen
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
"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 www.abiworld.org. For
additional conference information, visit 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 http://www.nbkrc.com.
*Definitions from Bankruptcy Overview:
Issues, Law and Policy, by the American Bankruptcy
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
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.