U.S. Consumer Bankruptcies Up 14% in First Half of 2010

Debt reliefU.S. consumer bankruptcy filings totaled 770,117 in the first six months of 2010 – a 14 percent increase over the 675,351 filings from the same period a year ago.
The consumer filings for January-June of this year mark the highest total since 2005, when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act in an attempt to slow down the rate of filings, according to the American Bankruptcy Institute (ABI).
ABI uses data from the National Bankruptcy Research Center for its updates.
On the positive said, the rate of monthly filings has been steadily decreasing since March.
“Years of rising consumer debt and low savings rates, combined with the housing and unemployment crises, are causing bankruptcy levels not seen since the 2005 amendments to the Bankruptcy Code,” said ABI Executive Director Samuel J. Gerdano. “We expect that there will be more than 1.6 million new bankruptcy filings by year end.”
The June consumer filing total of 126,270 was 8.5 percent more than the 116,365 consumer filings recorded in June 2009. Bit it represented a 7.8 percent decrease from the May 2010 total of 136,142 consumer filings.
Chapter 13 filings constituted 27 percent of all consumer cases in June, a slight increase from May.

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