by Calculated Risk on 3/05/2009 03:30:00 PM

The Administrative Office of the U.S. Courts reports: Bankruptcy Filings Up In Calendar Year 2008

Bankruptcy filings in the federal courts rose 31 percent in calendar year 2008, according to data released today by the Administrative Office of the U.S. Courts. The number of bankruptcies filed in the twelve-month period ending December 31, 2008, totaled 1,117,771, up from 850,912 bankruptcies filed in CY 2007. Filings have grown since CY 2006 when bankruptcy filings totaled 617,660, in the first full 12-month period after the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) took effect. An historic high in the number of bankruptcy filings was seen in calendar year 2005, when over 2 million bankruptcies were filed.

Click on graph for larger image in new window.

This graph shows the non-business bankruptcy filings by quarter.

Even though bankruptcy filings are up 31% in 2008 (from 2007), the number of bankruptcy filings is still below the levels prior to the 2005 law change.

With a much weaker economy in 2009, bankruptcy filings will probably increase sharply. Plus the mortgage cram-down legislation might lead to more filings.

Click on cartoon for larger image in new window. Another great cartoon from Eric G. Lewis, a freelance cartoonist living in Orange County, CA.