Consumer bankruptcies jump 32 percent in 2009
Consumer bankruptcies in the United States soared 32 percent in 2009 from the year before, the American Bankruptcy Institute said Tuesday.
The total filings -- 1.4 million -- is the highest since 2005, the same year that Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act.
"A combination of economic stress, including high debt loads, rising unemployment and unsustainable mortgage burdens, left many consumers with little choice but to seek the financial relief of bankruptcy, ABI Executive Director Samuel J. Gerdano said in a statement. "As these strains continue for U.S. households, we expect that consumer filings will rise higher in 2010."
Indeed, in December consumer bankruptcy filings rose 33 percent to 113,274 from 84,926 during the same month in 2008.
