New Personal Bankruptcy Statistics

The latest data available from the U.S. Administrative Office of Federal Courts, for personal bankruptcy statistics, is published through the end of the court's fiscal year ending in June, 2005. Based on published data, the trend after 200 remains clear:

• Each year, since 2002, the number of business filings decreased.
• Each year, since 2000, individual filings increased.
• Over 2 million people filed personal bankruptcy in the year ended 12-31-04, representing less than 1% of the U.S. Population (0.72%).

During the period of July 1, 2004, to June 30, 2005 approximately 91% of the individuals who filed experienced at least one of the following preconditions:

• Job loss, layoff, or termination.
• Serious illness.
• Contested family law dispute.

The most startling revelation during this period pertains to credit card debt. On average, the typical debtor in bankruptcy owes short term, unsecured debts (credit cards primarily, gas cards, department store charge cards, consumer revolving credit accounts) which represent 150% of their gross annual income.