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Bankruptcies soar by 37% in US and 31% in Canada for May

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posted on Jul, 7 2009 @ 11:24 AM

U.S. consumer bankruptcy filings soared 37 percent in May compared with the same period last year, according to figures released Tuesday by the American Bankruptcy Institute.

The figures, using data compiled by the National Bankruptcy Research Center, show total filings in May were 124,838, up from 91,214 recorded in May 2008.

Consumer bankruptcies were 34.4 per cent higher than a year ago, which is slightly less severe than the 36 per cent increase in April and much less dramatic than the 57 per cent rise in March, but still well above February's 25 per cent rise and January's 21 per cent increase.

Bankruptcy trustee Andy Fisher with A. Farber & Partners Inc. is seeing the phenomenon first hand. Most of the people walking into his office are preparing to declare personal bankruptcy – not corporate.

And while he saw a slowdown in May, June was one of his busiest months ever.

Companies, he said, “are laying people off and trying to stick it out.” The strategy comes at the expense of employees.

I wonder if those figures are padded...hmmm

posted on Jul, 7 2009 @ 11:47 AM
Interesting article. I found Brad999's comment to the article particularly informed.

Quote "The month of May was an improvement over April" That's just Great, but you forgot to mention what happens now. All those people that opted for bankrupcy are effectively out of the loop now and will not be contributing to any substantial consumer spending so business sales will fall even further. March stats were terrible as bankrupcies were up a staggering 57 percent that month. To say Mays figures are an improvement overall is a vast overstatment because 31 percent is still very bad. In fact if we were to continue at this rate everyone will be bankrupt soon. Our financial model is not sustainable.

He makes a good point.


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