Record Bankruptcy Filings in 1Q

May 26, 2003
Kent Hoover, Washington Bureau Chief

A record 413,000 new bankruptcy cases were filed in the first quarter of 2003, a 9 percent increase over the same period in 2002, according to the Administrative Office of the U.S. Courts.

"U.S. households continue to struggle with the burden resulting from consumer debts incurred in the 1990s," says Samuel Gerdano, executive director of the American Bankruptcy Institute.

Almost all of the new bankruptcy cases were personal bankruptcies -- business filings actually fell 10 percent in the first quarter to only 8,814.

The House in March passed legislation to force more bankruptcy filers to repay more of their debts, but the bill's prospects are uncertain in the Senate. Despite bipartisan support, bankruptcy reform efforts have failed repeatedly, largely due to side issues such as whether abortion clinic protesters should be allowed to use bankruptcy to escape fines and court judgments.

http://www.bizjournals.com/extraedge/washingtonbureau/archive/2003/05/26/bureau4.html