JULY 2007

Personal Bankruptcies Hit Spring Plateau

Petitions filed for personal bankruptcy across the United States have flattened in recent weeks. For the six week period ending June 16, 2007, the weekly filing volume in U.S. bankruptcy courts was relatively stable at around 15,000 filings per week. The chart below displays weekly filing volume for personal bankruptcies (all chapters), as compiled by Lundquist Consulting (Burlingame, CA).

Personal bankruptcy filings have exhibited a slow but steady upward trend since spring of 2006, following the dramatic decline in activity following enactment of bankruptcy reform in October 2005. Year-to-date filings in 2007 (through June 16) are 57% higher than for the same period in 2006. However, during the most recent four-week period (mid-May to mid-June), filing volume in 2007 is only 42% higher than for the same period a year ago, confirming at least a temporary plateau. Of course, the chart makes clear that filings so far this year remain well below those experienced in the first half of 2005, prior to bankruptcy reform. For the most recent four-week period (mid-May to mid-June), filing volume in 2007 was only 47% of the volume for the same period in 2005.

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