| |
BANKRUPTCY FILINGS IN FIRST HALF OF 2007 UP 48 PERCENT FROM A
YEAR AGO
August 16, 2007,
Alexandria, Va.— The total number of U.S. bankruptcies filed
during the first six months of 2007 increased 48.23 percent over
the same period in 2006 in all bankruptcy court districts,
according to data released today by the Administrative Office of
the U.S. Courts. Total filings reached 404,090 during the first
half of the calendar year of 2007 (January 1-June 30), compared to
272,604 cases filed over the same period in 2006.
“The new upward trend in
bankruptcies reflects the economic reality of households under
increasing financial stress,” said ABI Executive Director Samuel
J. Gerdano. “We expect bankruptcy filings to continue to rise for
the balance of 2007.”
Filings by individuals or
households with consumer debt increased 48.34 percent to 391,105
for the six-month period ending June 30, 2007, from the 2006
first-half total of 263,660. The overall percentage of consumers
filing for chapter 13 protection fell slightly from 41.15 percent
during the first half of 2006 (January 1-June 30) to 38.35 percent
over the same period in 2007. Conversely, the first-half 2007
percentage of chapter 7 consumer filers increased to 61.58 percent
from the 58.76 percent recorded in the first half of 2006.
Business filings for the
six-month period ending June 30, 2007, totaled 12,985,
representing a 45.18 percent increase over the first-half 2006
total of 8,944. Chapter 7 liquidations increased to 8,404 in the
first half of 2007, a 65.21 percent increase over the 5,087
business chapter 7 filings during the same period in 2006. Chapter
11 reorganizations also rose from 2,370 in the first half of 2006
to 2,713 in the same period of 2007, a 14.47 percent increase.
The 751,056 total filings for
the 12-month period ending June 30 were down 49.41 percent from
the same period in 2006, which totaled 1,484,570 filings, a figure
that includes a surge in cases filed before the implementation
date of a major change in the law. The bankruptcy filing rate per
thousand U.S. residents totaled 2.48 for all chapters during the
12-month period ending June 30, 2007, as 1.49 Americans per
thousand filed for chapter 7 while 0.97 per thousand filed for
chapter 13 bankruptcy. Tennessee was the state with the highest
per capita filing rate in the country with 6.03 residents per
thousand filing in all chapters, and also had the highest per
capita filing rate for chapter 13 filings at 3.78. The state with
the highest per capita filing rate for chapter 7 bankruptcy was
Indiana at 2.98 per thousand for the 12-month period ended June
30, 2007.
Nonbusiness filings for the
12-month period ending June 30, 2007, totaled 727,167, down 50
percent from the 1,453,008 total nonbusiness filings experienced
over the same period in 2006. Business filings for the 12-month
period ending June 30, 2007, totaled 23,889, down 24.31 percent
from the 31,562 bankruptcy petitions filed in the 12-month period
ending June 30, 2006.
The 450,332 total chapter 7 filings for the
12-month period ending June 30, 2007, represent a 61.34 percent
decrease from the 1,164,815 filings from the same period in 2006.
Chapter 13 filings fell 5.87 percent to 294,693 in the 12-month
period ending June 30, 2007, from 313,085 in the same period last
year. Chapter 11 filings also declined, falling 10.25 percent to
5,586 in 2007 from 6,224 in 2006. However, chapter 12 filings rose
7.22 percent from 360 in 2006 to 386 in 2007.
BUSINESS FILINGS for
the 3-month period ending June 30, 2007, totaled 6,705, up 38.02
percent from the 4,858 bankruptcy business cases filed in the same
period in 2006. NON-BUSINESS FILINGS for the 3-month period
ending June 30, 2007, increased 34.95 percent from 150,975 in 2006
to 203,744 in 2007.
The chapter* breakdown of
BUSINESS filings for the 3-month period ending June 30, 2007,
is: 4,333 chapter 7s, 1,430 chapter 11s, 112 chapter 12s and 821
chapter 13s.
The chapter breakdown of
NON-BUSINESS filings for the 3-month period ending June 30,
2007, is: 127,180 chapter 7s, 144 chapter 11s and 76,420 chapter
13s.
###
ABI is the largest
multi-disciplinary, nonpartisan organization dedicated to research
and education on matters related to insolvency. ABI was founded in
1982 to provide Congress and the public with unbiased analysis of
bankruptcy issues. The ABI membership includes more than 11,500
attorneys, accountants, bankers, judges, professors, lenders,
turnaround specialists and other bankruptcy professionals
providing a forum for the exchange of ideas and information. For
additional information on ABI, visit
www.abiworld.org. For additional conference information, visit
http://www.abiworld.org/conferences.html.
*Definitions from Bankruptcy Overview:
Issues, Law and Policy, by the American Bankruptcy Institute
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged,
providing a fresh financial start.
Chapter 11 of the Bankruptcy Code is
available for both business and consumer debtors. Its purpose is
to rehabilitate a business as a going concern or reorganize an
individual’s finances through a court-approved reorganization
plan.
Chapter 12 of the Bankruptcy Code is
designed to give special debt relief to a family farmer with
regular income from farming.
Chapter 13 of the
Bankruptcy Code is available for an individual with regular income
whose debts do not exceed specific amounts; it is typically used
to budget some of the debtor’s future earnings under a plan
through which unsecured creditors are paid in whole or in part.
John Hartgen
Public Affairs Manager
American Bankruptcy Institute
44 Canal Center Plaza, Suite 404
Alexandria, VA 22314
^ Back to top
|
|
