Contact: John Hartgen
FEBRUARY CONSUMER BANKRUPTCY FILINGS INCREASE
11 PERCENT FROM PREVIOUS MONTH
March 1, 2011, Alexandria, Va.— February consumer
bankruptcies increased 11 percent nationwide from January 2011,
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 February reached 102,686, up
from the 92,669 consumer filings recorded in January 2011.
“Though consumers are striving to reduce their debt burden, high
unemployment and a still-poor housing sector continue to fuel new
bankruptcies,” said ABI Executive Director Samuel J.
Gerdano. “We expect these factors to lead to over 1.5
million consumer filings this year."
Though an increase from the January 2011 filings, the February 2011
consumer bankruptcy total represents an 8 percent decrease from the
111,693 filings recorded in February 2010. Chapter 13 filings
constituted 30 percent of all consumer cases in February, a slight
decrease from January.
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
12,800 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
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