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National numbers rise 14% in first half of 2010 while Western District of New York is down 4%

Posted: July 12, 2010

Buffalo, NY -- Consumer bankruptcies nationwide reached 770,117 filings during the first six months of 2010. This represents a 14 percent increase over the same period last year, according to the American Bankruptcy Institute (ABI), which relies on data from the National Bankruptcy Research Center. The number of filings is the highest it has been since Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005.

The United States Bankruptcy Court Western District of New York (which includes the 17 counties surrounding Buffalo and Rochester) reported filings for the period beginning January 1, 2010 and ending June 30, 2010, were down 4 percent compared with the same period in 2009, with Buffalo seeing a 3 percent decrease and Rochester filings decreasing 6 percent.

“The rest of the country is still seeing the effects of rising consumer debt, low savings rates, the housing crisis and high unemployment. As the volume of filings nationwide approach 2005 levels, it proves the law of economic gravity is stronger than the laws of Congress,” said Jeffrey Freedman, senior partner, Jeffrey Freedman Attorneys at Law. “Although the number of filings in Western New York are down, we are seeing people who’ve been affected by high unemployment rates, particularly now that so many have been unemployed for such long periods of time that their unemployment insurance is running out. In addition, there are many people in serious financial trouble who don’t have the money to file. The increased filing fees and additional requirements for filing have put relief out of the reach for some.”

Nationally, the ABI reported that since March the number of filings per month has been going down as each month of the year passes, however, the organization still predicts filings will reach more than 1.6 million by year end.

“None of the economic markers show much of an improvement in the recession,” Freedman said. “This economy is like an airplane that’s gone into a stall -- and it’s going to be a while before we climb out of it.”

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