As expected, consumer bankruptcy filings hit a new record last year, rising nearly 32%, driven by the implementation of new bankruptcy laws. Over the past five years, a record 8.2 million Americans filed personal bankruptcy petitions. CA-based Lundquist Consulting released figures this morning showing consumer bankruptcy filings for 2005 were 2,043,535, up from 1,552,967 in 2004. The firm noted that the total number of filings since the enactment of the legislation on October 17 through December 31st was just over 38,000. Nearly 60% of all filings since October 17th have been filed as Chapter 13, as compared to about 30% historically under the old law. The Administrative Office of the U.S. Courts reported last month that filings for the third quarter hit a record 542,002. During the 12-month period ending September 30th, 1,782,643 bankruptcies were filed.
CONSUMER BANKRUPTCY FILINGS
Sources: Lundquist Consulting
Administrative Office of the U.S. Courts