Consumer Payment Card News

Bankruptcy Record

Americans continue to head to bankruptcy court in record numbers. Over the past five years, more than five million consumers have filed a Chapter 7 or full liquidation bankruptcy. Over the same period two million Americans have filed for Chapter 13 bankruptcy. Furthermore, bankruptcy filings for the twelve-month period ending June 30th hit an all-time high of 1.65 million, a 10% increase over the same period in 2002. Chapter 7 filings hit 1.17 million and Chapter 13 filings approached 500,000 over the past twelve months. According to the Administrative Office of the U.S. Courts, the total number of bankruptcy filings during the second quarter were 440,257, a 9.9% increase over 2Q/02. The 2Q/03 data was a high for quarterly filings.

                   (for year ending June 30th)
                 YearChap. 7     Chap. 13
                 20031,165,993      472,811
                 2002    1,053,230      440,231
                 2001      972,659      403,418
                 2000      885,447      380,770
                 1999      993,414      389,004
        Source: Administrative Office of the U.S. Courts

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