Bankruptcy filings rose an additional eight percent in 2010, with the total number of bankruptcies filed by the end of the year reaching 1,593,081. In 2009, the total number of bankruptcy filings was 1,473,675.
In a new report optimistically titled Growth in Bankruptcy Filings Slows in Calendar Year 2010 released today by the Administrative Office of the U.S. Courts, the agency provided the following breakdown of the data:
- Chapter 7 filings in 2010 totaled 1,139,601, up 8 percent from the 1,050,832 Chapter 7 filings in 2009;
- Chapter 11 filings in 2010 totaled 13,713, a 10 percent decrease from the 15,189 filings in 2009;
- Chapter 13 filings totaled 438,913, an 8 percent increase over the 406,962 filings in 2009;
- Chapter 12 filings totaled 723, a 33 percent increase over the 544 Chapter 12 bankruptcy filings in CY 2009.
While the growth in bankruptcy filings may have slowed slightly, the 2010 numbers still represent another year in which a new five-year high in filings was established. This may be great news for bankruptcy lawyers, but it may not be so great for other lawyers who need to collect legal fees from clients who are winding up in bankruptcy court.
What are your thoughts on the bankruptcy filings in America? Is the slight slowing in the growth in bankruptcy filings a good sign of anything, or does it just mean that too many people are already in bankruptcy court for the numbers to keep going up? Share your thoughts on the situation in the comments section below.
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