Consumer bankruptcies fell 8 percent in August
Bankruptcies filings by consumers fell 8 percent in August but still remained on track to top 1.6 million filings in 2010, according to a report by the American Bankruptcy Institute (ABI).
While monthly filings are volatile, consumer bankruptcies are still the highest they have been since Congress overhauled the bankruptcy law in 2005, ABI Executive Director Samuel Gerdano said in the report.
A total of 127,028 consumer bankruptcies were filed in August, according to the report.
Even though the number of filings fell in August compared with July, it increased 6 percent from the 119,874 consumer filings recorded in August 2009.
Chapter 13 filings constituted 29 percent of all consumer cases in August, a slight increase from July, the report said.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts.
The American Bankruptcy Institute is a non-partisan organization dedicated to research and education on matters related to insolvency. It was founded in 1982 to provide Congress and the public with analysis of bankruptcy issues.
(Reporting by Sakthi Prasad in Bangalore; Editing by Tomasz Janowski)
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