2006 Bankruptcy Statistics

The number of bankruptcy cases filed in federal courts rose 12.8 percent in the 12-month period ending March 31, 2006, according to statistics released today by the Administrative Office of the U.S. Courts. Bankruptcy cases totaled 1,794,795 for that period, compared to 1,590,975 bankruptcy cases filed in the 12-month period ending March 2005.

Prior to the March 2006 12-month reporting period, bankruptcy filings rose 30 percent in the 12-month period ending December 31, 2005. The increase in both the December and March 12-month reporting periods was the result of many debtors filing for bankruptcy before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect on October 17, 2005. The March reporting period includes bankruptcy petitions filed during that period.

Non-business filings for the 12-month period ending March 31, 2006, totaled 1,759,503, up 12.9 percent from the 1,559,023 total non-business filings in the 12-month period ending March 31, 2005. Business filings in March 2006, totaled 35,292, up 10.5 percent from the 31,952 bankruptcy petitions filed in the 12-month period ending March 31, 2005.

Filings for the first quarter of Fiscal Year 2006 (October 1, 2005 – December 31, 2005) totaled 667,431. The number of bankruptcies filed during the second quarter of the Judiciary's Fiscal Year 2006 (January 1, 2006-March 31, 2006) totaled 116,771. Bankruptcy filings for any three-month period have not fallen this low since 1985. In Fiscal Year 2005, filings for the second quarter totaled 401,149.

Chapter 7 filings rose 25.4 percent, from 1,141,715 in the 12-month period ending March 31, 2005 to 1,432,074 in March 2006. Chapter 13 filings fell 19.5 percent, to 355,756 in March 2006 from 441,838 in March 2005. Chapter 11 filings also declined, falling 8.7 percent to 6,497 in March 2006 from 7,115 in March 2005. Chapter 12 filings rose 93.7 percent from 189 in March 2005 to 366 in March 2006.