Consumer bankruptcies were up 9% for 2011 according to the American Bankruptcy Institute. The number, which hit 1,530,078, was 122,290 more than the total for 2009. Over 70% of the personal bankruptcy filings were Chapter 7. The numbers of Massachusetts Chapter 7 bankruptcies was up 13.9%, the 11th highest increase in the US.
The Wall Street Journal http://blogs.wsj.com/economics/2011/01/03/personal-bankruptcies-in-2010-by-state/ says that increased bankruptcy numbers is associated with housing busts. According to the ABI, the number of filings nationally has been up each year since the new bankruptcy law became effective, in October 2005. The December bankruptcy filings were up 4% from the previous December. According to the National Bankruptcy Research Center, the number of bankruptcies is approximately 1 out of every 150 people.
Apparently the growth in bankruptcy filings was in every part of the country, with the biggest increase in the Southwest, especially Nevada, and the Southeast, especially Florida. South Florida, for example, had a 40% increase in personal bankruptcies filed last year.
For 2011, it is not clear which way we are headed. A report by Robert Lawless for Credit Slips predicts the number to be about flat for 2011. Mr. Lawless bases his projections on a complex mathematical formula which is interesting to read about.