Monday, September 14, 2009
Bankruptcy Filings Up 22% Compared to Last Year
Posted by: Lisa Matthys
Written by: Christine Dugas
Nevada has replaced Tennessee as the state with the most bankruptcies, as filings continue to stack up nationally.
From January to August, national bankruptcy filings reached 954,911, up from 703,732 in the same period of 2008, according to Automated Access to Court Electronic Records. In August, filings were up 22% compared with August 2008.
It is likely that filings will total 1.45 million this year, says Robert Lawless, professor of law at the University of Illinois.
After the bankruptcy law changed in 2005, filings had slowed.
"But we're now heading back close to where they were before the law was enacted," Lawless says. "It's not surprising, because the 2005 law did nothing to change the underlying economic reality of why people file for bankruptcy."
The 2005 reform aimed to curb bankruptcy abuse and make it harder to erase debts.
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