It was the worst of times and apparently still is, as the U.S. Courts confirmed that the 1,306,315 bankruptcy filings during the 12-month period ending June 30, 2009, represented a 35 percent increase compared to the 967,831 cases filed during the same period last year.
Of the total 1,306,315 bankruptcy cases filed, 1,251,294 were non-business related filings, up 34 percent from the 934,009 non-business filings for June 30, 2008. Business filings totaled 55,021, up a recession-driven 63 percent from the 33,822 business filings reported in June 30, 2008.
Bankruptcy by the Chapter: All bankruptcy chapters saw increased filings during the 12-month period ending June 30, 2009:
- Chapter 7 (liquidations) filings totaled 907,603, up 47 percent from the 615,748 Chapter 7 filings in the 12-month period ending June 30, 2008.
- Chapter 13 (individuals) filings totaled 384,187, up 12 percent from the 344,421 filings in the same time period in June 2008.
- Chapter 11 (corporate reorganization) filings totaled 13,951, up 91 percent from the 7,293 filings during the 12-month period ending June 30, 2008.
- Chapter 12 (family farmer or fisherman) filings rose 34 percent to 422, from the 314 Chapter 12 bankruptcies filed as of June 30, 2008.
Driven by the recession, bankruptcy filings have increased steadily since passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005. Over the first 12 months following the enactment of the BAPCPA, bankruptcy filings plunged to only 617,660.
Also See:
Bankruptcy Filings Plunge after New Law (2007)
About the U.S. Federal Court System
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