A note to those who have taken all the positive financial and economic data released recently to offer proof the recession is over–consumer bankruptcies soared last year.

U.S. consumer bankruptcies increased 9 percent nationwide in 2010 from the previous year, according to the American Bankruptcy Institute (ABI) relying on data from the National Bankruptcy Research Center (NBKRC). The data showed that t
he overall consumer filing total for the 2010 calendar year (Jan. 1 – Dec. 31, 2010) reached 1,530,078 compared to the 1,407,788 total consumer filings recorded during 2009.

 

 

The trend may worsen this year as the number of people who have been employed for a long number of months increases. The failure of home prices to rise will also contribute to the financial pressure on people with high mortgages.

Douglas A. McIntyre