Business Bankruptcies Up from Last Year

According to a bankruptcy organization, there have been more Chapter 11 filings in the first half of 2009 when compared to the figures of last year.

The American Bankruptcy Institute (ABI) stated today that the number of businesses filing for Chapter 11 protection was 7,396 in 2009, which is 113 percent from the last year's figure of 3,470.

It was also stated that Chapter 7 business liquidations increased by 57 percent this year to 20,375. Last year the figure for the same time period was 13,002.

When taken as a whole, bankruptcy filings in general are up 64 percent this year, according to the institute.

"The increase in filings through the first half of this year is a product of continued financial stresses weighing on both consumers and businesses," said Samuel Gerdano, ABI executive director. "In this challenging economic environment, we expect bankruptcies to surge past 1.4 million by year end."

This follows news that Taylor, Bean & Whitaker Mortgage Corporation filed for Chapter 11 bankruptcy protection after a chain of events "crippled the company's business operation," the Wall Street Journal reports.