Personal Bankruptcy Rate Highest Since Bankruptcy Law Change
Personal bankruptcy filings in October reached the highest levels since the BAPCPA law change four years ago, according to Bloomberg.
Approximately 131,200 Americans filed bankruptcy last month, up 25% from October, 2008, and the highest since the new bankruptcy law took effect in October, 2005.
High unemployment, plummeting home values and tight credit are all contributing to the escalating bankruptcy rate, and total personal bankruptcy filings for 2009 have already surpassed the 2008’s final 1.07 million mark.
Personal filings are expected to reach 1.5 million in 2009, the most since 2005, when more than 2 million consumer bankruptcy petitions were filed— including 630,000 filed in the 2 weeks before the new law went into effect.
