Business Bankruptcy Filings Down, Consumer Bankruptcy Filings Up in First Half of 2010
There was a significant slowdown in business bankruptcy filings in the first six months of 2010, but consumer bankruptcy filings rose 15 percent from the same period one year ago, according to statistics from the Administrative Office of the U.S. Courts.
The national rate of Chapter 11 bankruptcy filings fell by 17 percent in the first half of this year, compared with the same period one year ago. Experts believe that better credit availability allowed troubled businesses to restructure their debt without having to file Chapter 11 bankruptcy.
The number of Chapter 7 business liquidation filings in the U.S. for the first half of 2010 was essentially flat.
However, consumers faced with a still-weak economy and soft job market are having to turn to bankruptcy as a solution for their debt woes in increasing numbers. Consumer bankruptcy filings for 2010 are still on track to exceed annual highs since the bankruptcy laws changed in 2005. There were over 781,000 consumer bankruptcy filings for the first six months of 2010, which was 15 percent higher than one year ago.
Florida was 15th on the national list of consumer bankruptcy filings on a per capita basis, with nearly six in every 1,000 residents filing for Chapter 7 or Chapter 13 bankruptcy in the first half of the year.
If you have a large amount of consumer debt and need help in making a good decision about your financial future, contact our Jacksonville, Florida bankruptcy law firm.
Greg Gilbert
Keith Maynard
