Personal Bankruptcy Filings Plunge 70% in First Quarter

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00018385-personal-bankruptcy-filings-plunge-70-in-/

Often used by many as a veritable “get out of debt (somewhat) free” card, personal bankruptcy filings plummeted in the first quarter of 2006 to their lowest level in 20 years. The cause? Tougher new laws enacted in October that make clearing bad debt through bankruptcy harder to accomplish.

In data released by California-based Lundquist Consulting Inc. and reported by the Associated Press Tuesday, filings fell 73 percent, from 381,743 in the first quarter of 2005 to 102,949 in the first quarter of 2006.

Interestingly enough, personal bankruptcy filings jumped by about 50 percent in September of 2005, anticipating the tougher new bankruptcy laws that went into effect on October 17.

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