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Contact: John Hartgen
             703-894-5935
             jhartgen@abiworld.org

OCTOBER CONSUMER BANKRUPTCY FILINGS FALL NEARLY 20 PERCENT FROM LAST YEAR

November 2, 2011, Alexandria, Va.— U.S. consumer bankruptcy filings totaled 106,255 nationwide during October, a 19.6 percent decrease from the 132,173 total consumer filings recorded in October 2010, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The October consumer filings also represented a 2 percent decrease from the 108,517 filings in September. Chapter 13 filings constituted 31.5 percent of all consumer cases in October, a slight increase from September.

"The declining filings correlate to tightened consumer spending and the overall pull back in consumer credit associated with a stagnant economy," said ABI Executive Director Samuel J. Gerdano. "We expect total 2011 consumer filings to be less than 2010."

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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 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.   


 

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