Total U.S. bankruptcy filings rose 11% during the first nine months of this year compared with the same period a year ago. Data from the Administrative Office of the U.S. Courts show there were 1,222,589 filings through September versus 1,100,035 in the first nine months of 2009.
Consumer filings jumped 12%, totaling 1,179,573 from the 1,054,525 filed during the same period in 2009. Bankruptcies have continued to increase since the 2005 amendments to the Bankruptcy Code.
"As the economy looks to climb out of the recent recession, businesses and consumers continue to file for bankruptcy to regain their financial footing," says American Bankruptcy Institute (ABI) executive director Samuel J. Gerdano. "With unemployment hovering near 10% and access to credit remaining tight, total filings in 2010 will likely exceed 1.6 million."
The 43,016 business bankruptcies recorded during the first nine months of this year represented nearly a 6% drop from the 45,510 business filings during the same period in 2009. Business filings during the three-month period ending September 30, totaled 13,957 filings, down 8% over the 15,177 business filings in 2009.
Chapter 11 business filings decreased nearly 5% to 2,916 during the third quarter of 2010, compared to the 3,060 filings during the similar period in 2009. Chapter 7 business filings totaled 9,807 during the three-month period ended September 30, representing a 9% decrease over the 10,798 filings during the same period in 2009.
The 1,596,355 total filings for the 12-month period ended September 30, were up nearly 14% from the same period in 2009, which totaled 1,402,816. Non-business filings for the 12-month period totaled 1,538,033, an increase of 14% from the 1,344,095 total non-business filings calculated over the same period in 2009.
