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 18,239.26 16.23 0.09%
Nasdaq 5,307.59 -2.24 -0.04%
S&P 500 2,150.98 -0.35 -0.02%
Treasuries 1.76 -0.00 -0.11%
Data as of 10:19am ET
Company Price Change % Change
Under Armour Inc 33.10 -4.80 -12.65%
Freeport-McMoRan Inc... 10.88 0.70 6.88%
Chesapeake Energy Co... 6.41 0.05 0.75%
Bank of America Corp... 16.77 -0.00 -0.03%
KeyCorp 13.69 0.59 4.50%
Data as of 10:04am ET


Wells Fargo workers CNNMoney interviewed say pressure to act unethically created serious mental health problems, including severe anxiety and deep depression. More

Stocks are widely expected to drop close to 10% if Trump wins the presidency. But even if Clinton wins, stocks could still sell-off the day after the election. More

Jordan Belamire has been sexually assaulted three times. Twice in real life, and once in virtual reality. More

The University of Illinois partnered with Coursera to launch one of the most affordable online MBA programs yet. More