Chapter 13 filings increased in July

According to new figures from the American Bankruptcy Institute, there was a significant increase in consumer bankruptcy filings in July when compared to figures from the same time period the year before.

The ABI found that there was a 34.3 percent increase in the July 2009 filings nationwide, which was also an 8.7 percent increase from June 2009 figures.

"Today's bankruptcy filing number reflects the sustained and growing financial stress on U.S. households," said ABI Executive Director Samuel J. Gerdano. "Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year."

It was also revealed that there were 126,434 U.S. consumer bankruptcy filings in July, which the ABI said was the highest monthly total since the Bankruptcy Abuse Prevention and Consumer Protection Act was implemented in October 2005.

Bloomberg.com reported that sub-prime borrowers were not the only ones who have been affected by the weakened economy and increasing unemployment rate. Celebrities Stephen Baldwin, a Hollywood actor, and Lenny Dykstra, a former Major League Baseball player, both sought bankruptcy protection from their mounting debt.