Bankruptcy filings in U.S. up 14 percent

The Daily Record Newswire

The number of bankruptcy filings rose 13.8 percent in the fiscal year ending in September, according to new figures released by the Administrative Office of the U.S. Courts.

In the yearlong period ending Sept. 30, 1,596,355 bankruptcy cases were filed, compared to 1,402,816 cases the year before. That increase was fueled mainly by non-business bankruptcy filings. The numbers represent the highest number of non-business filings for a fiscal year since 2005, immediately prior to the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act in October 2006.

In contrast, business-related filings saw a drop for the first time since 2006. Those filings, where the debtor is a corporation or partnership or the debt is predominantly related to the operation of a business, totaled 58,322, compared to 58,721 the year before, down nearly a percentage point.

Chapter 7 actions saw the biggest increase, rising 16 percent.

Chapter 13 filings were up 9 percent, while Chapter 11 filings fell nearly 4 percent.

Published: Thu, Nov 25, 2010

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