According to initial numbers posted by the National Bankruptcy Research Center, there were over 1,410,000 personal bankruptcies filed in 2009. The total is up 32% from 2008. We have found that the number of clients qualifying for Chapter 7 personal bankruptcy, in which you discharge all of your unsecured and non priority debt has increased as well. The number of personal bankruptcies are the highest since the new, stricter, bankruptcy law went into effect in October, 2005.
As in all 49 other states, the numbers for bankruptcy in Massachusetts were up for 2008. Other statistics cite that December was the 12th straight month in which there were more than 100,000 filings in a month. Fortunately, Massachusetts bankruptcies did not top the list for number or percentage of filings. However, our own observations were that clients with significantly higher family incomes were seeking bankruptcy protection in late 2009.