Nov
11 There have been 1,222,589 bankruptcies filed across the country between January 1 and September 30, an 11 percent increase over the number of cases observed in the same period last year, according to a report from the National Bankruptcy Research Center.
Consumer cases accounted for the vast majority of these filings, with 1,179,573 individuals seeking bankruptcy protection so far this year, the report said. The remainder – 43,016 – were made by businesses.
“As the economy looks to climb out of the recent recession, businesses and consumers continue to file for bankruptcy to regain their financial footing,” said Samuel Gerdano, executive director of the American Bankruptcy Institute. “With unemployment hovering near 10 percent and access to credit remaining tight, total filings in 2010 will likely exceed 1.6 million.”
Most consumers opted to file for Chapter 7 protection, the NBRC report said. Of all the cases in the last 12 months, 1,146,511 came under this type of filing, a 16 percent increase from the previous period. Meanwhile, Chapter 13 cases rose 9 percent, to 434,839.
Many Americans have faced financial hardships in recent months, thanks to the continued high level of unemployment and other factors, such as the financial crisis, which may have sunk them into deep debt.
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