January 20, 2010 - Both personal and business bankruptcies soared in 2009. Business bankruptcies rose 38% over 2008 levels with 89,402 filings nationwide. Consumer bankruptcies increased by 32% to more than 1.3 million. Both numbers are the highest they have been since 2004; the year that congress modified bankruptcy laws making it harder and more costly to file.
Yearly bankruptcy figures actually run from December, 2008 through November, 2009. December, 2009 numbers were not included in the statistics but when looked at separately, they were up 33% when compared with December, 2008. If the trend continues, 2010 promises to be a very tough year.
On a state by state basis, the state with the highest per capita bankruptcy rate was Nevada. Citizens of the state declared bankruptcy at 2.5 times the national average. The state with the largest year over year increase in bankruptcy filings was Arizona; 80% higher than 2008 levels. Every state had an increase in overall bankruptcy filings, but the states will the lowest increase were Nebraska, Pennsylvania, Tennessee, Alaska and South Carolina. All of these states had an increase of 15% or less.
Bankruptcies are being fueled by high unemployment and suffering housing markets. Even those who manage to find new jobs after being laid off often have to accept positions that pay significantly less that their old jobs.
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