Now in Legal Rebels:
Posted Apr 16, 2007 04:43 pm CDT
Bankruptcy cases filed in federal court in 2006 plummeted by more than two thirds compared to 2005, according to the Administrative Office of the U.S. Courts. Statistics released today show a 70 percent drop.
It appears, though, that this year’s filings are likely to go up: Bankruptcies filed in the last quarter of 2006 were higher than in any other quarter of the year, states a federal courts press release. Meanwhile, other sources show a big rise in 2007 filings, according to Dow Jones News Service and the Memphis Daily News.
The huge difference between 2005 and 2006 filings may be because of a change in the law: Parties and their lawyers reportedly rushed to file, and personal bankruptcies reached an all-time high before the more stringent Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect Oct. 17, 2005. For details of the pre-BAPCPA increase, see this CNNMoney.com story and this federal courts newsletter item.
Historical information on bankruptcy filings can be found on this page of the federal courts Web site.