The American Bankruptcy Institute (ABI) recently reported that U.S. consumer bankruptcy filings reached their highest monthly total since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in October 2005. A total of 126,434 consumers filed for protection under the code in July, representing a 34.3% increase nationwide from the same period last year.
July's numbers also represented an 8.7% jump from June's 116,365 total filings. Additionally, 28.3% of July's numbers were Chapter 13 proceedings, which also represented a slight increase over the June rate. "Today's bankruptcy filing number reflects the sustained and growing financial stress on U.S. households," said ABI Executive Director Samuel Gerdano. "Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of the year."
Shortly after the enactment of the BAPCPA, bankruptcy filing numbers experienced a major drop, only to begin a steady march back to pre-2005 levels as the financial crisis took hold of the nation's consumers and businesses.
Jacob Barron, NACM staff writer. Follow us on Twitter at http://twitter.com/NACM_National