Creditnet News Story
Federal filings for bankruptcy increase
Monday, November 30, 2009
By Sam Lee
Both business and personal filings up in fiscal year 2009.
Despite the fact that it could affect their credit score, more people filed for bankruptcy when compared to last year.
A recent report from the Administrative Office of the U.S. Courts shows that bankruptcy filings in federal courts for fiscal year 2009 were up 34.5 percent when compared to fiscal year 2008. In all, the office noted there were 1,402,816 filings in 2009, compared to the 1,042,993 seen the year prior.
Every type of bankruptcy saw an increase over fiscal year 2008. For example, Chapter 13 bankruptcy filings were up 13 percent, whereas Chapter 7 bankruptcies increased 45 percent.
Business filings for bankruptcy were up 52 percent and totaled 58,721. Non-business filings were up 34 percent when compared to the 1,004,342 seen in fiscal year 2009. For fiscal year 2009, non-business bankruptcy filings came in at 1,344,095.
For those who filed personal bankruptcy during the most recent fiscal year, they should keep in mind that doing so will affect their credit score. Furthermore, a bankruptcy can stay on a person's credit report for as long as 10 years.
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