Economy Spurs Bankruptcy Surge

In 2005, the government enacted a law intended to make it more difficult for individuals to wipe out their debts by filing for bankruptcy. It worked, at least for a while, as bankruptcy filings dropped by over 70 percent. Now, driven by a less than stimulated economy, it seems that bankruptcy has come roaring back, as 967,831 bankruptcy cases were filed over the last 12 months, compared to only 751,056 over the same period last year, according to the Administrative Office of the U.S. Courts.

In the first 12 months following the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), the number of bankruptcies fell from an all-time record 2,078,415 to just 617,660.

Also See:
Bankruptcy Filings Plunge after New Law (2007)
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