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Personal bankruptcy filings are up dramatically in 2009, according to a new report by the Bankruptcy Institute. In September alone, more than 126,000 people filed for bankruptcy. From January to the end of September, 1,046,449 people filed for bankruptcy protection. That number is nearly equal to all of the bankruptcy filings for last year, and there are still three more months to go in 2009.
The report projects that more than 1.4 million people will file personal bankruptcy this year. That represents the largest number of bankruptcy filings since 2005, when Congress passed a bankruptcy reform bill making it more difficult for people to declare bankruptcy and walk away from their debts.
The two leading causes of personal bankruptcy in the United States are unexpected job loss and uninsured medical bills. Both of these issues have been exacerbated by the recession. In good economic times, when people get laid off they can often find new work and medical insurance quickly. But in the current economic downturn, estimates are that there are now six candidates available for every advertised job.
Nationwide, the unemployment rate is currently 9.8% but in many areas of the country the rate now exceeds 10%.
byJim Malmberg
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