Bankruptcies Hit a 4-Year High
October 4, 2009 by Mark Ellis
Filed under Business
Personal bankruptcies hit a four-year high, topping the one million mark during the first nine months of 2009. According to the report issued by the American Bankruptcy Institute (ABI), the numbers increased 35% over the same period in 2008.
According to ABI, there were 1,046,449 personal bankruptcies in the first nine months of this year — the highest since 2005 when 1,350,360 consumer bankruptcies were filed. Approximately 71% of those who filed for bankruptcy in the first nine months of 2009, filed Chapter 7.
Image: Flickr
In 2005, the obvious reason for the large number of bankruptcies was change in the bankruptcy law. However this year, the economic and unemployment crisis, along with housing debt, are causing many consumers to run out of options and turn to bankruptcy.
