The Administrative Office of the U.S. Courts recently released data regarding bankruptcy filings in the United States for the 2010 calendar year. Total bankruptcy filings in the U.S. are at a five year high.
U.S. bankruptcies increased about eight percent in 2010 compared to 2009, which is the fifth straight year filings have increased. Combined, personal and business bankruptcies increased to about 1.59 million, compared to about 1.47 million in 2009. However, the rate was the slowest since 2005, when there were about two million bankruptcy filings. In 2005, the bulk of the bankruptcies, were due to filing before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) revisions, were effective.
Personal bankruptcy filings rose about nine percent in 2010, totaling about 1.41 million, while the unemployment rate also remained above nine percent. Chapter 7 bankruptcy filings, which involves the liquidation of assets, increased about eight percent in 2010, totaling approximately 1.13 million, as compared to 2009 when 1.05 Chapter 7 filings were reported. Chapter 13 bankruptcy filings rose eight percent to 438,913 in 2010, compared to 406,962 filings in 2009.
In New Jersey, there were 41,365 total filings for personal bankruptcy, which is a 14.2 percent increase from 2009, when there were 36,233 personal bankruptcy filings.
However, business bankruptcy filings in the U.S. declined approximately 7.5 percent, which the article states may be due to financing becoming easier for businesses to obtain. Chapter 11 filings, which permit the reorganization of business activities, declined to 13,713, compared to 15,189 in 2009.
With tough times facing our nation, including the economy, unemployment, and the foreclosure crisis, many Americans are finding it difficult to manage their finances, and may be facing bankruptcy. Deciding to file for personal bankruptcy is a difficult decision, and one that should be reached after a great deal of consideration. Consulting with a New Jersey bankruptcy lawyer can help you understand the bankruptcy process and can advise you on the best course of action regarding your specific financial situation. Call The Law Offices of Robert Manchel today at 866-503-5655 to learn how Mr. Manchel can help you.