Personal bankruptcies show no sign of slowing after rising more than a third this year and may hit 1.4 million by year’s end as more jobs are lost and loans become harder to get according to the American Bankruptcy Institute (ABI).
More than 126,000 consumers filed for bankruptcy in the United States in July 2009, an increase of 34% from July 2008 according to the ABI. The increase came after a 36.5% rise in personal bankruptcies in the first six months of 2009 compared to the same time period last year.
“Rising unemployment on top of high pre-esixting debt burdens is a formula for higher bankruptcies through the end of this year” said ABI Executive Director Samuel Gerdano.
And incrasing debt loads isn’t a problem reserved only for average Americans. Celebrities filing bankruptcy in July 2009 included television and movie actor Stephen Baldwin, who sought protection from his creditors after foreclosure proceedings were started against his home, and former major league baseball All-Star Lenny Dykstra.
