Catherine Clifford, a staff writer for CNNMoney.com, stated on Tuesday that the number of consumer bankruptcies spiked in July. According to a report filed by the American Bankruptcy Institute the total personal bankruptcy filings added up to 126,434 which was a 34.3% increase from the same time last year and an 8.7% increase since June. This is the highest monthly number of filings since the Bankruptcy Abuse Prevention and Consumer Protection Act in October of 2005.

“Today’s bankruptcy filing number reflects the sustained and growing financial stress on U.S. households,” said ABI Executive Director Samuel J. Gerdano in a written statement. “Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year.”

The 9.5% unemployment rate is a twenty-six-year high. And the job market doesn’t look like it will improve anytime soon. According to a consensus estimate of analysts polled by Briefing.com the unemployment rate in July should rise to 9.6%.

Incomes have not been increasing for people who do have jobs. A government report released on Tuesday stated that incomes eased 0.1% in June and were level in May, excluding the impact of government stimulus programs. At the same time, spending rose 0.4%.

28.3% of the bankruptcy cases in July were filed under Chapter 13.

If you are from the Denver, Aurora, Arvada, Wheat Ridge, Littleton, Englewood, Northglenn, Westminster, Broomfield, Lakewood, Brighton, Lafayette, or Golden, Colorado area, and are experiencing economic stress at this time, please contact me for help at: 303-955-7570, or help@cobankruptcyhelp.com, or fill out the free consultation form.