Contact: John Hartgen
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
"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
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
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.