Never a pleasant statistic, the American Bankruptcy Institute today released the numbers for American bankruptcies that occurred in October. Bankruptcies are on the rise, despite previous legislation that made it harder to file:
ABI (via Reuters): The 135,913 consumer bankruptcy filings in October represented a 27.9 per cent increase over last October’s monthly total of 106,266, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research centre (NBKRC). The October 2009 consumer filings represented an 8.9 per cent increase from the September 2009 total of 124,790. Chapter 13 filings constituted 28.5 per cent of all consumer cases in October, a slight increase from the September rate.
“The nearly 9 per cent increase in consumer bankruptcy filings in October, together with a 7 per cent jump reported in business cases, demonstrates the sustained stress on the U.S. economy,” said ABI Executive Director Samuel J. Gerdano. ABI forecasts that total bankruptcies this year will exceed 1.4 million, the highest number since 2005.