Consumer Payment Card News

Bankruptcy Boom

Consumers headed to bankruptcy court in droves last month as the number of filings reached its highest level since new bankruptcy laws went into effect three years ago. Consumer bankruptcy filings topped 100,000 in October, a 20% increase over the prior month and up 40% over October of last year. The latest statistics from the American Bankruptcy Institute and the National Bankruptcy Research Center show a consumer filing total of 106,266 in October. So far this year consumer filings have hit 880,076. According to the Administrative Office of the U.S. Courts, filings in the 12-month period ending June 30th neared the one million mark. The 967,831 bankruptcy cases filed represent a 29% increase over the prior 12-month period. Of the total filings 64% were Chapter 7 filings. Consumer filings for the same 12-month period, totaled 934,009, up 28% from the 727,167 bankruptcies filed in the 12-month period ending June 30, 2007.

BANKRUPTCY FILINGS
Jan 08: 66,050
Feb 08: 76,120
Mar 08: 86,165
Apr 08: 92,291
May 08: 91,214
Jun 08: 82,770
Jul 08: 94,124
Aug 08: 96,413
Sep 08: 88,663
Oct 08: 106,266
Source: CardData (www.carddata.com)

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