Bankruptcy Filings Up In November

December 3rd, 2008 by BankruptcyCorner

Consumer bankruptcy filings in the United States increased 39.2 percent in November compared to the same time last year, according to data gathered by the National Bankruptcy Research Center and analyzed by the American Bankruptcy Institute (ABI).

Over 99,000 consumers filed for bankruptcy protection in November, which was a decrease from the 106,266 who filed bankruptcy in October. The number of filings this year is still projected to top one million, according to ABI.

“While new bankruptcies dipped slightly in November from the yearly high reached last month, we are still on track for nealry 1.1 million new cases this year, the highest figure since Congress changed the bankruptcy laws in 2005,” said ABI Executive Director Samuel J. Gerdano.

Gerdano also said that the alarming rate of personal bankruptcy filings will likely continue well into 2009.

Almost one third of the personal bankruptcy filings in November were filed under Chapter 13, which is often used by debtors who are trying to keep from losing their home to foreclosure.

While numbers for November Foreclosures have not been released, the number of homes in foreclosure in October was up 25 percent compared to October of last year.

The October 2008 U.S. Foreclosure Market Report released by RealtyTrac.com, which shows foreclosure filings including default notices, auction sale notices and bank repossessions, showed 279,561 U.S. properties in some stage of the foreclosure process during the month, a 5 percent increase from September.