Consumer bankruptcy filings leapt by nearly one-third last year and are expected to continue higher this year.
During 2009, 1,407,788 consumer bankruptcies were filed, the American Bankruptcy Institute reported today. Filings increased from 1,064,927 the prior year.
ABI’s more than 12,400 members include lenders, judges and other bankruptcy professionals. Its report was based on data from the National Bankruptcy Research Center.
The group noted than annual filings have risen every year since 2005 — when the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted.
“We expect that consumer filings will rise still higher in 2010,” ABI Executive Director Samuel J. Gerdano predicted in today’s report.
During just December, consumer bankruptcy filings were 113,274, higher than 112,152 the prior month. A year earlier, 84,926 filings were made.
Chapter 13 filings accounted for 28 percent of last month’s activity, around 31,700 cases. In November, the share was 29 percent, representing about 32,500 filings.
