Consumer Bankruptcies Climb

Posted In: Bankruptcies

I came across a piece in today’s Wall Street Journal that talked about how consumer bankruptcies are climbing. According to the American Bankruptcy Institute, U.S. consumer bankruptcy filings in June were 37.1% higher than a year ago. In the article, Samuel Gerdano, ABI’s executive director, said, “Underlying concerns of high debt loads are still a constant, pointing to rising filings in the future.” Other research confirms this disturbing trend. On July 3, the National Bankruptcy Research Center, a subsidiary of Lundquist Consulting, Inc., industry leader in bankruptcy statistics and analytics, released their 2Q 2007 findings, which showed the fifth consecutive increase in bankruptcy filings since the first quarter of 2006. From April to June 2007, 200,732 filings took place, an 11.6% increase over the first quarter of 2007 and 40.6% higher than the same period in 2006. NBKRC found that on an annualized basis, 1 in every 136 households filed bankruptcy in 2Q 2007, as opposed to 1 in every 190 households in 2Q 2006. California led the country with 16,251 bankruptcy filings in the second quarter of 2007.

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