Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Bankruptcy filings on the rise

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- It's tough out there -- no jobs, home values plummeting -- and Americans are reacting by heading to bankruptcy court.

Bankruptcy filings surged 14% during the first half of 2010, according to the American Bankruptcy Institute. Filings totaled 770,117 through June, compared to 675,351 during the same period last year.

"Years of rising consumer debt and low savings rates, combined with the housing and unemployment crisis, are causing bankruptcy levels not seen since the 2005," said Samuel Gerdano, executive director of the institute, in a press release.

In 2005 Congress amended the Bankruptcy Code, making it harder for Americans to file and sparking a rush to file by October of 2005, when the amendments kicked in. In 2005, bankruptcy filings totaled more than 2 million.

By comparison, Gerdano expects there will be more than 1.6 million new bankruptcy filings by the end of 2010.

The institute also said that bankruptcies totaled 126,270 in June, a jump of 8.5% from the same month in 2009, when they totaled 116,365.

The institute relied on data from the National Bankruptcy Research Center for its information. To top of page

Search for Jobs

Index Last Change % Change
Dow 17,750.91 -140.25 -0.78%
Nasdaq 4,763.22 -54.37 -1.13%
S&P 500 2,063.37 -18.06 -0.87%
Treasuries 1.80 -0.06 -3.49%
Data as of 7:48am ET
Company Price Change % Change
Bank of America Corp... 14.36 -0.41 -2.78%
Pfizer Inc 33.70 0.90 2.74%
Freeport-McMoRan Inc... 12.01 -1.54 -11.37%
Apple Inc 95.18 1.54 1.65%
Frontier Communicati... 5.22 -0.22 -3.95%
Data as of May 3
Sponsors

Sections

The legal fallout from a deadly Brazilian dam collapse is far from over for two of the world's biggest miners, Vale and BHP Billiton. More

For many white men with no more than high school diplomas, the U.S. economy has left them behind. More

Real estate mogul and Shark Tank star Barbara Corcoran suggests women wear bright colors and yank up their skirts -- for business. More

Visa says new software will allow consumers to check out with chip cards as fast as swiping a card with magnetic strip. More