Recession "Over" As Consumer Bankruptcies On Track To Hit 1.6 Million Total For 2010
After declining in August by a solid 8%, September consumer bankruptcy filings once again are on the rise, with the monthly total hitting 130,329, 4.4% higher than the prior month. Overall, YTD bankruptcies of 1,046,449 are 11% higher than compared to the same period last year, as America revels in its newly found post-recession reality by going straight to bankruptcy go and not passing go. As Dow Jones reports, "the bankruptcy filings so far in 2010 represent the highest total since 2005" and are on track to hit 1.6 million by the end of the year. Can someone please forward this data over to the nice Ph.D.'s over at the NBER to whom timing recessions is now apparently nothing but a joke.
Log scale representation of bankruptcies:
From the American Bankruptcy Institute:
U.S. consumer bankruptcy filings totaled 1,165,172 nationwide during the first nine months of 2010 (Jan. 1-Sept. 30), an 11 percent increase over the 1,046,449 total consumer filings during the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The consumer filings for the three-quarters of 2010 represent the highest total since 2005, when Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) to try and stem the tide of filings.
“While the 2005 bankruptcy overhaul law aimed to reduce filings, overall consumer debt and continued financial stress have led to consumer bankruptcies climbing back to pre-BAPCPA levels,” said ABI Executive Director Samuel J. Gerdano. “We expect that there will be nearly 1.6 million new bankruptcy filings by year end.”
The overall September consumer filing total of 130,329 was 4.4 percent more than the 124,790 consumer filings recorded in September 2009. The September total also represented a 3.3 percent increase from the August 2010 total of 127,028 consumer filings. Chapter 13 filings constituted 30 percent of all consumer cases in September, a slight increase from August.
It was unclear as of the time of this posting, how many of the 1+ million consumer bankruptcies were filed by current or former Wall Street employees.