Trials & Litigation
Consumer Bankruptcies Rise Almost 50%
Posted May 2, 2008, 09:26 am CST
By Martha Neil
Attributing the problem to the subprime mortgage crisis, the American Bankruptcy Institute has reported a 47.7 percent increase in consumer bankruptcy filings during the past month, compared to April 2007.
Filings are also up 7 percent since March, reports Reuters.
The group's executive director, Samuel Gerdano, expects total consumer bankruptcy filings this year to top 1 million. This, however, would be far from a record: new filings exceeded 2 million in 2005, the highest amount ever, as individuals filed prior to a change in federal law that reduced the protections Chapter 7 bankruptcy offers, the news agency notes.
Related coverage:
Atlanta Journal-Constitution: "Georgia still No. 2 in rate of personal bankruptcies"
Springfield Business Journal (Mo.): "Bankruptcies filed in Springfield still on the upswing"
Finance Daily (U.K.): "Bankruptcy Figures Soar: Insolvency Loses Stigma"