Consumer Bankruptcies Rise Nearly 30 Percent

The number of consumer bankruptcies filed in September rose 28.6 percent compared with a a year ago, according to the American Bankruptcy Institute. More than 88,000 consumer bankruptcy filings were made in September. ABI says the number declined 8 percent from August. The percentage of Chapter 13 cases, where consumers can often work out terms to keep their homes, was 33.5 percent for September.

“The continued rise in personal bankruptcies reflects high consumer debt, made worse by energy costs and the weak housing market, trapping many households in homes they can neither afford or sell,” said ABI Executive Director Samuel J. Gerdano. “We expect consumer bankruptcies to exceed 1.1 million new cases by year end.”

Oct. 3, 2008.