Bankruptcy filings back on the rise

Bankruptcy filings back on the rise

St. Paul Pioneer Press
Friday January 4, 2008 Pg 1C

U.S. personal bankruptcy filings jumped 40 percent in 2007 because of rising mortgage payments, job losses and other financial pressures. The increase followed a sharp decline from a year earlier, when a new law made it more difficult for consumers to seek bankruptcy-court protection from creditors.

More than 800,000 personal bankruptcy filings were made in 2007, compared with more than 573,000 in 2006 - the lowest level since 1998, according to data collected by the National Bankruptcy Research Center and published by the American Bankruptcy Institute, a research group in Alexandria, Va.

Personal bankruptcy filings soared to more than 2 million in 2005 for the nation, with more than 600,000 filings made in October, when the law took effect.

Minnesota bankruptcies through November totaled 10,834, compared with 7,729 filings for all of 2006. The 11-month 2007 total is well below 2005's 25,420 for the same period. From 1999 through 2004, Minnesota saw between 14,510 and 19,416 filings during hte first 11 months.