Consumer Debt Rises for Young Adults

According to the Wall Street journal A typical young U.S. household—defined as one led by someone under age 35—had $15,000 in total debt in 2010, down from $18,000 in 2001 and the lowest since 1995, according to a recent Pew Research Center report and government data. Total debt includes mortgage loans, credit cards, auto lending, student loans and other consumer borrowing. In addition, fewer young adults carried credit card balances, and 22 percent did not have any debt at all in 2010—the most since government tracking began in 1983.

Bankruptcy Filings on the Rise

While bankruptcies were down from a year ago, February’s bankruptcy filings trended upward from January. Total bankruptcy filings for the month of February represented a 5 percent increase over the 78,565 total filings registered in January 2013. The total noncommercial filings for February also represented a 5 percent increase from the January 2013 noncommercial filing total of 74,831.

Bankruptcy Filings Down

U.S. consumer bankruptcy filings totaled 100,980 nationwide during November, a 12 percent decrease from the 114,587 total consumer filings recorded in November 2010. NBKRC.com Chapter 13 filings constituted 31 percent of all consumer cases in November, a slight decrease from October.

Bankruptcy Filings Down

August consumer bankruptcies decreased 11 percent nationwide from August 2010, according to data from the National Bankruptcy Research Center (NBKRC). The data showed that the overall consumer filing total for August declined to 113,432, down from the 127,028 consumer filings recorded in August 2010. Each month of 2011 has recorded fewer bankruptcies than last year. 

Business Bankruptcies

According to American Bankruptcy Institute data, more than 323,000 businesses filed for bankruptcy from 2004 through 2010, more than 39,000 of them in California. This state's share of all U.S. business bankruptcies has increased from 12.4% in 2007 to 15.7% in 2010, an indication that the recession hit California businesses harder than their counterparts nationwide.

http://www.ocregister.com/articles/bankruptcy-299278-businesses-small.html


Our office files Ch 7 for business, or sole proprietors in Ch 13.

Bankruptcy Filings Up

Bankruptcy filings for the 12-month period ending March 31, 2011, rose 2.6 percent when compared to bankruptcy filings for the 12-month period ending March 31, 2010, according to statistics released today by the Administrative Office of the U.S. Courts

http://www.uscourts.gov/News/NewsView/11-05-06/Bankruptcy_Filings_Up_Slightly_in_March.aspx.

APRIL CONSUMER BANKRUPTCY FILINGS FALL 7 PERCENT FROM LAST YEAR

April consumer bankruptcies decreased 7 percent nationwide from April 2010, according to the American Bankruptcy Institute (ABI).

1 out of 45 Households in Bankruptcy

About 54,000 households in the federal court district that includes the Sacramento region declared bankruptcy last year, up 20 percent from 2009.


The rate of bankruptcy filings in the eastern district of California is now about 50 percent higher than the national average.

Most filers asked for Chapter 7 protection, a liquidation which addresses unsecured debt like credit cards. About 10,000 filed for debt restructuring under Chapter 13, which is often done to try to save a home from foreclosure

First Quarter Consumer Bankruptcy Filings Fall 6 Percent from 2010

Consumer bankruptcies for the first quarter of 2011 decreased 6 percent nationwide from the same time period in 2010, according to ABI, relying on data from the National Bankruptcy Research Center NBKRC. The data showed that the overall consumer filing total for the first three months of 2011 (Jan. 1-March 31) reached 340,012, down from the 363,215 consumer filings recorded for the first quarter of 2010. A month-by-month look at the data showed that the overall consumer filing total for March reached 144,657, up from the 102,686 consumer filings recorded in February 2011. Though an increase from the previous month, the March 2011 consumer bankruptcy total represents a 3 percent decrease from the 149,268 filings recorded in March 2010. Chapter 13 filings constituted 26 percent of all consumer cases in March, a slight decrease from February.

HEALTH CARE REFORM MAY NOT REDUCE MEDICAL BANKRUPTCIES

A new study finds that the Massachusetts health care reform law—a model for national reform—did not improve coverage and has left many still struggling with medical debt, the Los Angeles Times reported today. Proponents of the national health care reform enacted last year have claimed that it would reduce medical bankruptcy in the United States by helping more Americans get insurance. The new study published today in the American Journal of Medicine suggests that a reduction in bankruptcies is unlikely. To gauge whether health care reform in Massachusetts has eased bankruptcies, the researchers looked at a random sample of Massachusetts bankruptcy filers in July 2009, sending surveys to almost 500 households. They compared their results to national and Massachusetts data collected in 2007, before the Massachusetts reform was implemented in 2008. They found that while the percentage was down slightly, medical bills still contributed to 52.9 percent of all bankruptcies in the state. Absolute numbers of medical bankruptcies were up by a third. Total bankruptcies in Massachusetts went up 51 percent between 2007 and 2009.

http://www.latimes.com/health/boostershots/la-heb-obamacare-insurance-costs-03082011,0,981846,print.story

Business Bankruptcies Fall in February as Consumer Woes Persist

Data provider Epiq Systems Inc. reported that 5,973 companies filed for bankruptcy in February, marking a 2.8 percent decline compared with January filings, Dow Jones Daily Bankruptcy Review reported today. Against those declines, overall bankruptcy filings grew by 6.9 percent during February to 109,178 filings, according to data released Monday. "Some folks and businesses are just now running out of gas," said John Penn of Haynes and Boone LLP. "There's only so long you can [extend and pretend] until there's nothing left." Epiq's data showed that chapter 11 filings slowed to 984 during Februrary, down from 1,049 filings in January.

Bankruptcy Filing Stats

Bankruptcy filings reflect the economy as a whole – and it’s clear we are not on a fast path toward recovery. Consumers are clearly struggling to pay off the debt they’ve accrued over the years, and are turning to bankruptcy as a last resort.


The regions that appeared to be the hardest hit by personal bankruptcy filings were situated in the Southwest, with some exceptions, while the Southeast appeared to experience the most dramatic declines in personal bankruptcy filings. The states that saw the largest increases in bankruptcy filings in 2010 from the previous year included Hawaii (28.9%) California (25.0%), Utah (24.4%) and Colorado (17.4%). Conversely, states that saw drops in the rate of personal bankruptcy filings included Tennessee (-7.2%), West Virginia (-7.1%), South Carolina (-4.1%), Iowa (-3.6%) and Kentucky (-2.7%).

The number of U.S. consumers who filed petitions for personal bankruptcy protection grew 9 percent to 1.53 million in 2010 and this could rise as consumers struggle with excess debt in an uncertain economy, according to the American Bankruptcy Institute (ABI), an association of attorneys and other bankruptcy professionals, and the National Bankruptcy Research Center (NBKRC).

HK bankruptcy petitions up 3.4 pct in Dec vs Nov

HONG KONG, Jan 21 (Reuters) - Hong Kong bankruptcy petitions totalled 704 in December, up 3.4 percent from November but down 22.4 percent compared with the same month last year, government data showed on Friday.

Consumer Bankruptices Increase 9% in 2010

New data shows that U.S. consumer bankruptcies increased 9 percent nationwide in 2010 from the previous year according to the American Bankruptcy Institute (ABI).


Data from the National Bankruptcy Research Center (NBKRC) showed that the overall consumer filing total for the 2010 calendar year (Jan. 1 – Dec. 31, 2010) reached 1,530,078 compared to the 1,407,788 total consumer filings recorded during 2009. Annual consumer filings have increased each year since the Bankruptcy Abuse Prevention and Consumer Prevention Act was enacted in 2005.

The Middle District of Florida hit a record all time high is 201.
NBKRC’s data also showed that the 118,146 consumer filings recorded in December 2010 represented a 4 percent increase from the 113,274 filings in December 2009. The December 2010 consumer filings also represented a 3 percent increase from the November 2010 total of 114,587. Chapter 13 filings constituted 30 percent of all consumer cases in December, a slight increase from November.

A study released earlier this year found that Americans aged 65 and older are filling for bankruptcy more than any other demographic according to a recent study by John Pottow, professor of law at the University of Michigan Law School. The study showed the number filers age 65 and over doubled from 2.1% in 1991 to 4.5% in 2001. The trend continued in 2007, as the proportion of filers in this age group rose further to 7.0%.

Consumer Bankruptcy Filings Increase 9 Percent in 2010

U.S. consumer bankruptcies increased 9 percent nationwide in 2010 from the previous year, according to ABI relying on data from the National Bankruptcy Research Center (NBKRC).

Chapter 7 on the Rise

The Bankruptcy Abuse Prevention and Consumer Protection Act of five years ago made it harder for individuals to receive Chapter 7 bankruptcy protection, in part by increasing the costs associated with filing. Chapter 7 is designed to give individual debtors a "fresh financial start" by liquidating assets and discharging debts.


In fiscal 2010, Chapter 7 filings spiked nearly 15% to over 1.1 million, from 989,227 in fiscal 2009. Chapter 13 filings, in which debtors are typically required to repay debts according to a budget plan that the court sets up, rose 9.2% in the year. Chapter 11 filings fell 3.8%.

Meanwhile, business filings decreased slightly in fiscal 2010, according to the Courts. Bankruptcies filed by a corporation or partnership totaled 58,322, down 0.7% from the 58,721 business filings in 2009.

Bankruptcy Filings Up Nearly 14 Percent over Last Fiscal Year

Bankruptcy cases filed in federal courts for fiscal year 2010, the 12-month period ending September 30, totaled 1,596,355, up 13.8 percent over total FY 2009 bankruptcy filings of 1,402,816, according to statistics released today by the Administrative Office of the U.S. Courts. While non-business bankruptcy filings continued to rise in FY 2010, business filings dropped slightly for the first time since 2006. The bankruptcies reported today are for October 1, 2009 through September 30, 2010.

http://www.uscourts.gov/News/NewsView/10-11-08/Bankruptcy_Filings_Up_Nearly_14_Percent_over_Last_Fiscal_Year.aspx

Average Age of Someone Filing Bankruptcy 44.9 years old

Although younger to middle-aged individuals appear to carry more debt - including student and mortgage loans, credit card balances and auto financing - a new report reveals that more older Americans are filing for bankruptcy. According the American Bankruptcy Institute Journal, individuals aged 55 and older are becoming the fastest-growing demographic to file.


The report, Aging and Bankruptcy Revisited, shows that middle-aged Americans are still the largest age group to file. However, older generations who are seeking this type of debt relief rose 61 percent between 2002 and 2007.


In addition, the report noted that the age of those filing has also increased, revealing that the median age increased from 41.4 years in 2002 to 44.9 years in 2007. While the age of those filing grew between 2002 and 2007, younger generations saw a decline in the prevalence of filings during that same period. The number of individuals under the age of 25 who filed for bankruptcy declined from 4 percent in 2002 to 1.7 percent in 2007.

Highest Bankruptcy Rate

Nevada had the highest overall bankruptcy rate, while Alaska had the lowest. Meanwhile, personal bankruptcies rose 15 percent in the first half of 2010, while business filings declined 4 percent, the institute says.


Nationally, filings show that bankruptcies are on pace to surpass 1.6 million by year's end, the American Bankruptcy Institute said.

Bk Stats

781,150 consumers who sought bankruptcy protection through June 30. That number exceeds the amount of consumer filings for the same period in 2009 by 15% and puts total filings on pace to reach their highest annual level since bankruptcy laws changed in 2005.