Bankruptcies resulting from household financial distress continue to increase. U.S. consumers made 675,351 bankruptcy filings in the first half, a 36.5% increase from a year ago, Bloomberg notes, citing the American Bankruptcy Institute [ABI].
June filings by consumers totaled 116,365, up 40.6 percent from the same period in 2008, the ABI said in a release. The monthly rate of consumer filings slowed, however, declining by 6.8 percent from May 2009.
“Consumers are turning to bankruptcy as a last financial resort,” said ABI Executive Director Samuel Gerdano.
Gerdano said in the release he expects 1.4 million new bankruptcy filings by year end.
During a period of unprecedented weakness and economic instability, personal bankruptcies –Chapter 7, 13, have soared, raising fundamental questions on clear normative policy implications and the industry’s prospects for that matter.