Consumer Payment Card News

Bankruptcy 2007

Overall, post-holiday bankruptcy filings surged in the first three months of this year to more than 185,000, a nearly 60% increase over the year-ago period. Momentum exploded in March, rising more than 30% over the prior month. According to OK-based Jupiter eSources and DC-based American Bankruptcy Institute, consumer filings rose from 50,000 in January to 55,000 in February and slightly less than 73,000 in March. The Administrative Office of the U.S. Courts reports there were 117,000 filings in the first quarter of 2006 and an all-time record of 667,431 in the fourth quarter of 2005. There is a consensus that bankruptcy filings could top one million in 2007 driven by the implosion in the sub-prime mortgage market.

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