| Million Bankruptcy Filings |
| By Credit Federal |
Published
08/31/2008
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Financial News
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Bankruptcy Filings
According to U.S. court information, in the past 12 months close to 1 million consumers and businesses filed bankruptcy, which is up 28.9% from the prior 12 months.
There were 934,009 bankruptcy filings by consumers, and 33,822 filings by businesses, for a total of 967,831. 592,376 were Chapter 7 filings, which involve liquidation of non-protected assets like family homes.
Filings were also filings under Chapter 13 protection, which allows individuals to reorganize their finances and pay down their debt, and Chapter 11, which is normally used for businesses but can apply to individuals who are reorganizing but have more debt than allowed under Chapter 13.
As for business bankruptcy filings, 23,372 were Chapter 7 which allows for an orderly shut down of the business. There were also filings under Chapter 11, Chapter 12 for family farm bankruptcy, and Chapter 13 filings for small debt reorganization.
According to a new analysis from the Consumer Bankruptcy Project; which examined a sampling of noncommercial bankruptcies filed between 1991 and 2007, bankruptcy filings for senior citizens in particular has risen sharply.
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