Consumer Payment Card News

Bankruptcy Rebound

More Americans are “hitting the wall” as total bankruptcy filings jumped 34% in the third quarter (July through September) compared to the year ago period. The number of filings is the highest in more than two years and topped one million for the twelve month period ending September 30th, representing a 30% annual growth rate. During the third quarter total filings hit 292,291 compared to 276,510 for the second quarter and 218,909 one-year ago. Compared to two years ago bankruptcy filings nearly doubled from 171,146. According to the Administrative Office of the U.S. Courts non-business filings in the 12-month period ending September 30th hit 1,004,342. Of total personal filings 68% were Chapter 7 filings and 31% were Chapter 13 filing. The Administrative Office of the U.S. Courts noted that the latest statistics are the highest of any 12-month period since the 2006 implementation of the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,” when there were 1,112,542 filings in the 12-month period ending September 30, 2006.

QUARTERLY BANKRUPTCY FILINGS
3Q/06: 171,146
4Q/06: 177,599
1Q/07: 193,461
2Q/07: 210,449
3Q/07: 218,909
4Q/07: 226,413
1Q/08: 245,695
2Q/08: 276,510
3Q/08: 292,291
Source: Administrative Office of the U.S. Courts

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