October Consumer Bankruptcy Filings Reach New Highs, Up 28% Over Last Year
OCTOBER CONSUMER BANKRUPTCY FILINGS REACH NEW HIGHS, UP 28 PERCENT OVER LAST YEAR
November 4, 2009 Alexandria, Va. — 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.
http://www.abiworld.org/AM/Template.cfm?Section=Home&TEMPLAT...
The student loan legislation
The student loan legislation they passed makes it impossible to claim bankruptcy on student loans. Watch all these new generations of students come out into this economy unable to find a job or pay back their loans.
http://www.meetup.com/RP2012GrandJunctionCO
2005 had a high number of bankruptcies
because Congress had just passed the bullshit law making it much harder to file Chapter 7. People were filing in record numbers before the law could take effect.
The fact that we are back at that high level is very telling. However, now these folks will have a much more difficult time losing the debt, and may be forced to make payments for decades.
Ironically, Citigroup (a company who has issued credit cards to kids, handicapped and even dead people) has just filed for bankruptcy.
What goes around...