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Bankruptcies increase in October
11/10/2009
More people appear to be having money management problems, leading to a recent increase in bankruptcy filings.
According to the American Bankruptcy Institute, which based its findings on numbers from the National Bankruptcy Research Center, the 135,913 consumer bankruptcy filings seen in October represent a 27.9 percent increase over the same month in 2008. Furthermore, bankruptcies increased by 8.9 percent when compared to September, which means some consumers continue to have debt management problems.
The ABI reports it expects bankruptcies filings to mount to more than 1.4 million for the year, which would be the highest number since 2005.
"The nearly 9 percent increase in consumer bankruptcy filings in October, together with a 7 percent jump reported in business cases, demonstrates the sustained stress on the U.S. economy," ABI executive director Samuel J. Gerdano, said.
That sustained stress on the economy may continue in the near future, at least in terms of job growth. The unemployment rate recently hit 10.2 percent, and many analysts predict it will stay above 10 percent throughout much of 2010. As a result, more people could find it difficult to pay off debt, which may lead them to seek help from lenders or consumer credit counseling firms.
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