In 2010, total filings were recorded at 1.59 million – up from 1.47 million in 2009. The Administrative Office report said, “the total filings remained at a five-year high.”
The report said “Filings have grown steadily since CY 2006, when bankruptcy filings totaled 617,660.” The period marked the first full 12-month period of implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).
According to the report, majority of the filings were related to non-business debts. Last year, non-business filings reached 1.53 million – a 9 percent increase from the previous year’s level of 1.41 million.
Business-related filings, on the other hand, went down by 7 percent to 56,282 from 60,837 in 2009.
Filings according to Chapter also increased under the bankruptcy code, the report said.
Filings for Chapter 7, which governs the process of liquidation under the bankruptcy code, were at 1.13 million in 2010 up from the previous year’s 1.05 million.
Filings for Chapter 11, which permits reorganization under the code, dropped to 13,713 in 2010 from 15,189 from 2009 – a 10 percent decline.
Filings for Chapter 13, which provides a bankruptcy court supervised-financial reorganization, increased from 406,962 in 2009 to 438,913 in 2010 – an 8 percent rise..
Chapter 12 filings, which is applicable only to family fishermen and farmers, increased by 33 percent in 2010 from the previous year – 723 from 544.
BAPCPA was signed by then President Bush on April 2005 and took effect 180 days after the bill’s signing.
BAPCPA instituted sweeping changes to U.S. bankruptcy laws. It addressed prevalent abuse of previous bankruptcy laws by making it “more difficult for people to file for bankruptcy.” In 2005, bankruptcy filings reached record numbers – over 2 million, many were filed in anticipation of BAPCPA’s implementation.
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