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U.S. Bankruptcies Up 36 Percent in First Half of 2009

August 25, 2009

ALEXANDRIA, Va. — The total number of U.S. bankruptcies filed during the first six months of 2009 increased 36 percent over the same six-month period in 2008, according to the Administrative Office of the U.S. Courts. Total filings reached 711,550 during the first half of the calendar year of 2009 (January 1-June 30), compared to 522,205 cases filed over the same period in 2008.

“The increase in filings through the first half of this year is a product of continued financial stresses weighing on both consumers and businesses,” said ABI Executive Director Samuel J. Gerdano. “In this challenging economic environment, we expect bankruptcies to surge past 1.4 million by year end.”

Business filings for the six-month period ending June 30, 2009, totaled 30,333, representing a 64 percent increase over the first half 2008 total of 18,456. Filings by individuals or households with consumer debt increased 35 percent to 681,217 for the six-month period ending June 30, 2009, from the 2008 first-half total of 503,749.

The 381,073 total filings for the second quarter 2009 (April 1-June 30) represented a 38 percent increase from the year-ago period filing total of 276,510. The 1.3 million total filings for the 12-month period ending June 30, 2009, represented a 35 percent increase from the same period in 2008, which totaled 967,831.

Nevada was the state with the highest per capita filing rate in the country with 9.33 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 6.67. The state with the highest per capita filing rate for chapter 13 bankruptcy was Tennessee at 4.35 per thousand for the 12-month period ended June 30, 2009.

Nonbusiness filings for the 12-month period ending June 30, 2009, were up to 1.2 million, a 34 percent increase from the 934,009 total nonbusiness filings over the same period in 2008. Business filings for the 12-month period ending June 30, 2009, totaled 55,021, up 63 percent from the 33,822 bankruptcy petitions filed in the 12-month period ending June 30, 2008.

 

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