Total bankruptcy filings jumped by 9.8% in the third quarter compared to the prior quarter, but, remain well below year ago levels. During the third quarter total filings hit 171,146 compared to 155,833 for the second quarter and 542,002 one-year ago. According to the Administrative Office of the U.S. Courts filings for the 12-month period ending September 30th, fell 37.6% to 1,112,542. Non-business or personal bankruptcies fell 37.9% for the same period while business bankruptcies declined 20.1%. The record filings last year were part of the surge in filings prompted by the October 17, 2005 implementation of the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.” However, this week MA-based Global Insight said it expects U.S. corporate bankruptcies to increase by 17% in 2007. The majority of these increases are expected to occur in the metals, mining, and energy sectors, as well as in real estate and closely related industries, such as mortgage banking and residential construction.
QUARTERLY BANKRUPTCY FILINGS
Source: Administrative Office of the U.S. Courts