Consumer Payment Card News

Bankruptcy Soars

Bankruptcy filings for the twelve months ending June 30th hit an all-time record of 1.5 million. One year ago, annual filings totaled 1,386,606. Bankruptcy filings first broke one million during the 12-month period ending June 30, 1996. According to Administrative Office of the U.S. Courts there were 1,466,105 personal bankruptcy filings over the past twelve months, an 8.5% increase over the previous year. There were 1,053,320 Chapter 7 filings during the past year. On a quarterly basis, total bankruptcy filings were only up slightly, from 400,394 for 2Q/01 to 400,686 for the second quarter of 2002. Most credit card issuers are preparing for a spike in personal bankruptcy filings if the bankruptcy reform legislation is passed by Congress.

             BANKRUPTCY  FILINGS  TRACK  RECORD
          (For Second Calendar Quarter of Each Year)
   1991:  246,496         1996: 297,162        2001: 400,394
   1992:  250,622         1997: 367,168        2002: 400,686
   1993:  229,406         1998: 373,460
   1994:  216,213         1999: 345,956
   1995:  235,302         2000: 321,729
       Source: Administrative Office of the U.S. Courts

Leave A Reply