Wednesday, November 4, 2009

Personal BK's Up 28% Over Last Year

From the American Bankruptcy Institute: October Consumer Bankruptcy Filings Reach New Highs, Up 28 Percent Over Last Year

The 135,913 consumer bankruptcy filings in October represented a 27.9 percent 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 Center (NBKRC). The October 2009 consumer filings represented an 8.9 percent increase from the September 2009 total of 124,790. Chapter 13 filings constituted 28.5 percent of all consumer cases in October, a slight increase from the September rate.

"The nearly 9 percent increase in consumer bankruptcy filings in October, together with a 7 percent 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.

2005 had a huge spike because a federal BK reform law was put into place requiring a means tests and classes be taken. They wanted to weed out the BK filer who was abusing the system.

I also read this troubling piece put together by CNN highlighting people that are forced to save money because of job losses and illness; resorting to fishing for dinner and hunting deer. This is on their personal financial site CNN-FN/Money. Things are very very bad. Extreme Saver Article Here.

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