Personal Bankruptcies Rise Nearly 30% In A Year
The American Bankruptcy Institute (ABI) has released its numbers for the month of September and the stress felt by U.S. residents continues as financial burdens force personal bankruptcy.
Compared to September 2007, September 2008 saw bankruptcies increase 29%. There were 88,663 consumer bankruptcy filings for the month.
ABI’s Director Samuel Gerdano said in a statement that in addition to the debt which many carry, the cost of gas and fuel, and the disintegration of the housing market has led many to choose bankruptcy.
In fact, if one takes a sampling across the U.S., the personal bankruptcy trends can be clearly seen. According to New West, Montana Chapter 7 bankruptcy filings increased from 664 to 1140 with particular increases seen in September.
Lynn Myers, chief deputy clerk at the state’s bankruptcy court told New West, “We had 25 cases open up in one day. We haven’t seen something like that since October in 2005.”
The expectation for small businesses in Montana is bleak, too, as local lawyer, Edward Murphy told New West, “The big threat is yet to come… I’m talking to a lot of small businesses in a weak condition, without a lot of cash flow.”
October 3, 2008 – 5:06 pm