Bankruptcy

December Bankruptcy Filings Up 33 Percent

By Chris Kramer

Consumer bankruptcy filings reached 113,274 in December, 2009, an increase of 33 percent over December, 2008, according to data released by the American Bankruptcy Institute, bringing an end to the highest year for bankruptcy since 2005.

The December total was also a slight increase over the 112,152 consumer bankruptcies filed in November, 2009, a sign that even the holiday season could have exacerbated consumers' financial stress.

Ten months in 2009 had total consumer filings top 100,000--only January and February were below that mark.

Bankruptcy Chapters

According to the ABI, 28 percent of consumer bankruptcies in December were Chapter 13 bankruptcy filings, with the majority of consumer filing Chapter 7.

Bankruptcy is often considered a lagging economic indicator, and typically remains high even with other signs of economic turnaround can be seen. The unemployment rate, for example, dropped slightly in November from its October high of 10.2 percent, and is expected to have dropped in December as well.

Full post as published by The Bankruptcy Blog on January 06, 2010 (boomark / email).