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Bankruptcy Filings Are Reaching Record Numbers Again

Bankruptcy filings are reaching record numbers again [1]Written by Craig D. Robins, Esq.
 
Consumers with debt problems filed 1.53 million bankruptcy petitions last year according to recent data.
 
This represents a nine percent increase over 2009, reflecting on the need for Americans to utilize bankruptcy protection to resolve their financial debt problems, which are in large part attributable to the recession, national financial crisis and overall weak economy.
 
This high number of filings represents the most bankruptcy proceedings we’ve seen since the two million figure in 2005 when consumers rushed to file before a stricter set of new bankruptcy laws [2] took effect.  Even though the new bankruptcy laws were supposed to reduce the number of filings, that has not been the case.
 
Half a year ago I wrote a an article about More Chapter 7 Cases Being Filed Nationally — New Trend [3].
 
Bankruptcy Filing Statistics for Eastern District of New York
 
This year there were a total of 23535 bankruptcy cases filed in the Eastern District of New York, which includes the bankruptcy courts in Central Islip and Brooklyn. 
 
The cases filed this year in the E.D.N.Y. represent an increase of about four percent over last year, when there were 22670 cases filed.
 
Here’s a chart of the bankruptcy filings for 2010, month-by-month for the Eastern District of New York.  You will notice that there was a big jump from February to March 2010 that remained somewhat constant for the rest of the year. 
 
That is likely because many consumers are inundated with credit card bills after the New Year and also make a New Years Resolution to resolve their debt problems by filing for bankruptcy.
 
In addition, the typical time a consumer bankruptcy case takes for the attorney to prepare and file is at least several weeks, so the typical consumer who hires a bankruptcy attorney around this time of year will see their petition filed towards March.
  
2010-bankruptcy-filings-chart-edny [4]
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