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Friday, Mar 29, 2024

Bankruptcies Decline

As expected, the number of personal and business bankruptcies has fallen off considerably compared to last year, the result of new regulations. For the first nine months of the year, bankruptcies fell by 68.5 percent to 443,750 from 1.41 million for the same period a year ago, according to data released by the Administrative Office of the U.S. Courts. Personal bankruptcies fell by 69 percent and business bankruptcies declined by 45.9 percent for the same period. The Bankruptcy Abuse Protection and Consumer Protection Act of 2005, which went into effect in October, 2005, limited the protection offered by bankruptcy filings by requiring debtors to repay at least some of their debt and shifted the types of cases filed to consumer Chap. 13 filings instead of Chap. 7 filings.

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