Consumer bankruptcies rise in 2010

By Kimberly Atkins

The Daily Record Newswire

Consumer bankruptcy filings rose 9 percent in 2010, according to a new report by the American Bankruptcy Institute.

Relying on data from the National Bankruptcy Research Center, the report shows that 1,530,078 consumer bankruptcy filings were made in the in the 2010 calendar year, compared to 1,407,788 filed in 2009.

The number of consumer bankruptcy filings has climbed each year since the Bankruptcy Abuse Prevention and Consumer Prevention Act was enacted in 2005 went into effect.

The report also showed that the 118,146 consumer filings recorded in December 2010 represented a 4 percent increase from the 113,274 filings in December 2009.

''The steady climb of consumer filings notwithstanding the 2005 bankruptcy law restrictions demonstrate that families continue to turn to bankruptcy as a result of high debt burdens and stagnant income growth,'' said ABI Executive Director Samuel J. Gerdano in a statement.

''We expect that consumer filings will continue to rise in 2011.''

Published: Thu, Jan 13, 2011