Bankruptcy up 30%

The data also showed that filings for Chapter 7 rose 36% to 615,748 in the 12 months that ended June 30

All Bankruptcy filings surged 29% in the 12 months that ended June 30, according to government figures released Wednesday.

Business filings jumped more than 41% to 33,822 from 23,889 in the year-ago period. Personal filings totaled 934,009, up 28% from last year.

Bankruptcy cases surged in late 2005 because of the Bankruptcy Abuse Prevention and Consumer Protection Act, which made it harder for individuals to receive Chapter 7 bankruptcy protection.

Lawmakers who voted in favor of the law included Sen. John McCain, R-Ariz., the Republican presidential candidate, and Sen. Joe Biden, D-Del., the Democrats' vice presidential pick.

Democratic presidential candidate Sen. Barack Obama, D-Ill., voted against the act.

Recently, Obama has proposed to fast-track bankruptcy proceedings for military families and help seniors facing bankruptcy keep their home.

Proponents of the law argued that it would prevent consumers from using bankruptcy laws to clear debts that they actually have the ability to repay. Consumer advocates decried it as a boon to creditors - particularly credit card companies - that lose money when debtors declare Chapter 7 bankruptcy