Consumer bankruptcies totaled 1,046,449 filings through the first nine months of 2009 -- the first time since the 2005 bankruptcy overhaul that filings have surged past the 1 million mark during the first three calendar quarters of a year, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center.
The filings for the first three-quarters of 2009 were the highest total since the 1,350,360 consumer filings through the first nine months of 2005.
"Bankruptcy filings continue to climb as consumers look to shelter themselves from the effects of rising unemployment rates and housing debt," said ABI Executive Director Samuel J. Gerdano. "The consumer filing total through the first nine months is consistent with our expectation that consumer bankruptcies will top 1.4 million in 2009."
The September 2009 consumer filing total reached 124,790, a 41 percent increase from the 88,663 consumer filings in September 2008. The September 2009 filings also represented a 4 percent increase over the 119,874 filings in August 2009 and it is the fourth highest single month since the 2005 law change.
Chapter 13 filings constituted 28 percent of all consumer cases in September, unchanged from the August rate.
Earlier in the week, the American Bankers Association reported delinquency rates hit record quarterly highs in three key consumer loan categories: home equity loans, home equity lines of credit, and bank cards.
The composite ratio, which tracks eight closed-end installment loan categories, also hit a record high at 3.35 percent of all accounts (seasonally adjusted) compared with 3.23 percent of all accounts in the previous quarter.
The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
ABA Chief Economist James Chessen blamed continued job losses, shorter work weeks and falling incomes, saying, "Six consecutive quarters of job losses have taken their toll. The picture won't change until the labor market improves and the economy picks up steam. This is going to take time."
