Bankruptcy Filings Rocket Up 28 Percent

Recently released data from the U.S. Bankruptcy Court system showed that personal bankruptcy filings in the United States for the 12 month period ending June 30, 2008, were up 28 percent to 934,009. Tennessee had the highest bankruptcy filing rate per capita, Michigan had the highest per capita rate of Chapter 7 filings (that’s the one without the establishment of a payment plan for those new to the bankruptcy game), and the 9th Circuit (governing California, Arizona, and Nevada) had the highest percentage increase in bankruptcy filings - a massive 60.9 percent increase.

The American Bankruptcy Institute expects 1.2 million bankruptcy filings this year.  I feel confident that the blame for the increase in bankruptcy filings can be placed firmly on the nation’s increasing credit card and medical debt, declining home prices, and job losses.

Businesses haven’t been immune from the pressures causing individuals to turn to bankruptcy.  The Associated Press found bankruptcy filings by 12 companies with $1 billion or more in assets, more than the prior four years combined.  And the bankruptcy court data showed business bankruptcy filings up 41 percent to 33,822.

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