Federal Bankruptcy Filings Are Up By 34.5%

Federal Bankruptcy Filings Are Up By 34.5%

WASHINGTON (AP/HuffPost)-- Bankruptcy filings in federal courts jumped by more than one-third this year, as businesses and individuals struggled to regain their footing in a weakened economy.

New numbers from the Administrative Office of the U.S. Courts show about 1.4 million bankruptcy cases were filed this fiscal year. That's up 34.5 percent compared with the more than 1 million cases filed last fiscal year. The bankruptcy figures cover a period from Oct. 1, 2008, to Sept. 30.

Filings under Chapters 7, 11, 12 and 13 all rose -- particularly filings for Chapter 11 protection, which increased 68 percent. Overall, business filings were up 52 percent, while nonbusiness filings rose by 34 percent.

States with the highest bankruptcies per 1,000 population are:

1. Nevada
2. Tennessee
3. Alabama
4. Indiana
5. Michigan
6. Ohio
7. Kentucky
8. Arkansas
9. Illinois
10. Colorado

Go to the economics and finance blog Calculated Risk to see these rates graphed.

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