July 8, 2010

By: Shaun Ertischek, Esq.

In the first half of 2010, consumer bankruptcy filings have continued to grow as individuals seek to escape the burdens of unmanageable debt.  According to the American Bankruptcy Institute, 770,117 consumer bankruptcies were filed in the country during the first six months of 2010, which was a 14% increase over the 675,351 consumer filings made during the same 6-month time period in 2009.  The Institute for Financial Literacy recently published the 2009 Annual Consumer Bankruptcy Demographics Report, which details trends among those filing for bankruptcy.  Leslie Linfield, Executive Director for the Institute for Financial Literacy, notes that “what differentiates the 2009 data from previous years is the increase in bankruptcy filings among individuals earning $60,000 or more a year, those holding bachelors or graduate degrees, and adults ages 55 and older.”  Clearly, bankruptcy has now become an option for Americans in financial hardship from all walks of life.