Sara Murray and Conor Dougherty of the Wall Street Journal wrote an article yesterday discussing the bankruptcy figures for 2009. They wrote that the bankruptcy filings have risen by a third in 2009, stating that this surge in numbers were largely due to “foreclosures and job losses.”

Despite the change in the Bankruptcy Code in 2005 aimed at encouraging individuals to file Chapter 13 bankruptcy, which plans for repayment of debts, over Chapter 7 bankruptcy, which relieves the filer of many of their debts, more people are filing Chapter 7.

“Personal bankruptcy filings hit 1.41 million last year, up 32% from 2008, according to the National Bankruptcy Research Center, which compiles and analyzes bankruptcy data.” It is the largest number of personal-bankruptcy filings since 2005, when consumers pushed to file prior to the new bankruptcy laws taking effect.

Chapter 7 bankruptcy cases were greater than 42% as of November 2009, compared with the same period a year earlier, according to the research center.  Whereas Chapter 13 bankruptcy cases increased by 12% and accounted for less than a third of 2009 bankruptcy cases as of November.  

There’s been some debate as to whether the growing trend toward filing personal bankruptcy is slowing down. But in December of 2009 there were 113,274 bankruptcy cases filed, which was a third higher than the number filed in December of 2008.

If you live in Denver, Colorado, or any of the surrounding areas, please feel free to contact me with any questions you might have.

Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.