The Bronson Law Offices - Queens Articles 14 Percent Increase In Bankruptcy Filings

14 Percent Increase In Bankruptcy Filings

By Bronson Law Offices  Apr. 5, 2011 2:41p

A Huge Increase In Non-Business Filings Over 2009

A report released by the federal government showed an alarming increase in total bankruptcies for the fiscal year 2010, by nearly 14%.

The statistics show an especially large increase for non-business filings, says the report released by the Administrative Office of the U.S. Courts. During the fiscal year of 2010, which ended on September 30th, the total number of Bankruptcy cases filed had increased from 1,402,816 in FY 2009 to 1,596,355, an increase by 13.8 percent. This alarming increase was entirely due to private filings, despite a decrease in business filings for the first time since 2006.

Business filings are defined in the Bankruptcy Code as filings where the debtor is a corporation or partnership or is predominantly related to the operation of a business. Over the FY 2010, bankruptcy claims went down slightly from 58,322 to 58,721, a small decrease by 0.7 percent. This slight fall may not be statistically significant, but it does provide a glimmer of hope for the ailing economy.

The non-business filings, however, continued to rise, increasing to the highest rate since 2005, when the government implemented the Bankruptcy Abuse Prevention and Consumer Protection Act in October 2006. The new rate rose most sharply for Chapter 7 filings, which increased from FY 2009 by a whopping 15.9 percent, from 989,227 claims to 1,146,511. The next biggest increase was in Chapter 13 claims, which rose from 398,210 filings to 434,839, an increase of 9.2 percent.

The rising numbers of bankruptcies being filed are most likely a result of the financial meltdown that has hit the United States. Falling salaries, unemployment, and perhaps most notably the drop in real estate values has all created significant financial pressure on individuals, that my have contributed to the rising insolvency.

Contact A Bankruptcy Attorney To Discuss Your Options

If you have been a victim of the economic troubles facing our country, please speak with a Queens bankruptcy lawyer at the firm of Bronson Law Offices. Our legal team specializes in financial law, with over 25 years of experience handling cases.

Contact a Queens bankruptcy lawyer as soon as possible!

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