More than 800,000 consumer bankruptcies have been filed so far this year. Monthly filings reached the highest level in nearly four years.
Consumers filed 126,434 bankruptcies during July, the American Bankruptcy Institute reported yesterday.
Filings increased by nearly 10,000 from June’s 116,365 consumer bankruptcies and were more than one-third higher than the 94,124 filings reported for July 2008.
The trade group — whose more than 12,000 members include attorneys, judges and lenders — said more filings occurred in July than any month since October 2005 when the Bankruptcy Abuse Prevention and Consumer Protection Act was implemented.
The increase was attributed to rising unemployment, high pre-existing debt burdens and “the sustained and growing financial stress on U.S. households.”
July filings included around 35,800 Chapter 13 filings, higher than 32,200 the previous month.
The ABI said its findings are based on data reported by the National Bankruptcy Research Center.
Through July 31, this year’s consumer bankruptcies totaled 801,785.
