The American Bankruptcy Institute released new data this week about business and consumer bankruptcies. The good news? (Well, it’s good, unless you ask a bankruptcy attorney.) Business filings were down nearly 6% from the beginning of 2010 through the third quarter, compared to the same 9-month period in 2009.
But consumers are still filing bankruptcy at increasing rates: “Nearly 1.18 million U.S. consumers sought protection from their creditors in court, a 12% increase over the same period in 2009,” explains Eric Morath of the Wall Street Journal’s Bankruptcy Beat blog.
Morath talked to ABI Executive Director Samuel J. Gerdano, who offered this insight: “Consumers and businesses moving in different directions reflects that individuals are still suffering under the effects of high unemployment and large debt burdens but businesses are often getting a reprieve from their lenders, allowing them to put off a bankruptcy filing.”
Here’s the release from the American Bankruptcy Institute.
Creditors Rights 101 