According to data from U.S. bankruptcy courts and compiled by bankruptcy data firm Automated Access to Court Electronic Records there were more than 1 million filings in the United States in 2008 -- the most since a rewrite of bankruptcy laws went into effect in 2005.

Chapter 7 allows people to discharge all of their debts, while Chapter 13 allows you to repay your debts with a e to 5 year plan. 

The greatest increases in per capita bankruptcy filings were found in Nevada (7.15 filings per 1,000 residents), Delaware (4.02), California (3.57), Florida (3.63) and Rhode Island (3.99). Even thought it was spread unevenly not one jurisdiction showed a decrease in filings, whether measured on a per capita basis or by the raw numbers of filings.  Tennessee had the dubious distinction of having the overall highest per capita rate of filings for the second straigt year.  While Alaska retained its title as the land of the fewest personal bankruptcies.

Businesses were not left out. Chapter 11 bankruptcies, under which businesses file for court-supervised reorganization or liquidation, also soared. A total of 10,084 companies filed under Chapter 11 in 2008. That represented an increase of 62% and was more than double the number of such filings in 2006. 

If the economy continues to worsen then we will see this number continue to increase.

 
Posted by Chris Lee on 02/02/2009 03:29 PM   Comments (4)   bankruptcies, bankruptcy, credit, bad credit  
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4 Comments on Personal Bankruptcies soar 33% in 2008

FEB
02
2009

All too true!  3 Years ago, I knew one person that had gone through bankruptcy.  At least 4 close friends are going through it right now.  Seems like some people really need it, some abuse the system, and some save lives.  We have had a rash of suicides lately with builders and those in the real estate profession...there is ALWAYS another answer. 

 

Tracey
3:32pm • #1
194,958 Points

Ironically because of the number of suicides during the great depression thats way the windows in high rise building don't open.  In years past it was easy to filebankrutpcy and start over.  The laws changed and now its harder to file.  Can you imagine how many there would be if it were a little easier or less costly? Too many people are finding it easier to just walk away from homes and families. 
5:28pm • #2
518,404 Points Outside Blog Attended Rain Camp

that makes perfect sense, that bankruptcies have increased....many people are trying to keep their homes...and filing is one of the only ways.
8:59pm • #4
FEB
04
2009

Bankruptcies are up, and the banks continue to sit on money. Money that is needed to get things moving again.  Let's hold these banks accountable for the use of all this "bailout" money!!
12:36pm • #5


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Chris Lee

Tuscaloosa, AL

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