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

Index Last Change % Change
Dow 21,065.48 53.06 0.25%
Nasdaq 6,200.55 37.53 0.61%
S&P 500 2,413.06 8.67 0.36%
Treasuries 2.25 -0.02 -0.71%
Data as of 12:20pm ET
Company Price Change % Change
Bank of America Corp... 23.28 -0.07 -0.32%
Ford Motor Co 10.82 -0.14 -1.31%
Chesapeake Energy Co... 5.34 -0.21 -3.85%
General Motors Co 32.50 -0.70 -2.11%
Best Buy Co Inc 59.92 9.50 18.84%
Data as of 12:05pm ET
Sponsors

Sections

Sears reported another giant drop in sales at both its Sears and Kmart chains. The stock may be surging on hopes that the company will avoid bankruptcy, but the company needs a real strategy to get customers back in the stores. More

Trump is aiming to get at least 6 million Americans off government aid and into full-time jobs. Liberals call this cruel. Conservatives call it overdue. A lot of economists call it magical thinking. More

Sometimes your financial health could use the same kind of checkups and preventive care that you apply to your physical health. More