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Bankuptcy Returns

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Bankruptcy filings are slowly but surely rising above the 10,000 per week level. However, the figures remain well below the 35,000 per week level experienced one-year ago, prior to the full implementation of the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.” During June filings topped 46,000, the highest level since October when the reforms went into effect. The number of filings in the first quarter is the lowest number of quarterly filings in the last 20 years. According to CA-based Lundquist Consulting 1Q/06 Chapter 7 consumer filings were 80% lower 1Q/05. According to the Administrative Office of the U.S. Courts, consumer and business bankruptcy filings hit a record 667,431 petitions in the fourth quarter, but, dropped to a record low of 116,771 petitions in the first quarter of this year. (CF Library 3/27/06; 6/2/06)

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|_2. MONTHLY FILINGS |
|_. Nov 05: | 21,457 |
|_. Dec 05: | 32,480 |
|_. Jan 06: | 34.411 |
|_. Feb 06: | 39,636 |
|_. Mar 06: | 42,724 |
|_. Apr 06: | 44,989 |
|_. May 06: | 43,780 |
|_. Jun 06: | 46,118 |
|_2. Source: CardData (“www.carddata.com”:http://www.carddata.com) |

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