Contact: John Hartgen
CONSUMER BANKRUPTCY FILINGS INCREASE 17 PERCENT IN AUGUST
September 6, 2007,
U.S. consumer bankruptcy
filings increased 17.3 percent nationwide in August from the previous
month, according to the American Bankruptcy Institute (ABI). Relying on data provided by the
National Bankruptcy Research Center (NBKRC), overall consumer filings
totaled 74,607 in August, up from the 63,600 filings in July. The figure
was also up 31.2 percent from August 2006. Chapter 13 filings
constituted 39.6 percent of all consumer cases in August, down slightly
from last month.
"The uptick in August
bankruptcies continues the trend we've seen all year," observed
ABI Executive Director Samuel
J. Gerdano. "Families facing heavy household debts are increasingly
turning to bankruptcy as a short-term fix."
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 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
Bankruptcy Overview: Issues, Law and Policy, by the American
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.
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.
12 of the Bankruptcy Code is designed to give special
debt relief to a family farmer with regular income from
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