Bankruptcy filings increase 32 percent in 2009

Bankruptcy filings increased 32 percent in 2009 compared to 2008. According to statistics released by the National Bankruptcy Research Center, 1.3 million individuals and businesses filed for bankruptcy.

This uptick in filings includes a 42 percent increase in Chapter 7 filings and a 12 percent increase in Chapter 13 filings. The relatively larger increase for Chapter 7 filings was significant because Congress had passed legislation in previous years encouraging individual bankruptcy filers to file for Chapter 13 over Chapter 7.

If you or anyone you know is considering filing for Chapter 7 or Chapter 13, contact the Birmingham bankruptcy lawyers of Paula Greenway at (205) 324-4000.

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