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| Consumer Bankruptcy Filings for First
Quarter 2006 Reach Lowest in 20 Years. |
Burlingame, CA, April 5, 2006- Lundquist Consulting, Inc.,
industry leader in bankruptcy statistics and analytics releases findings that
first quarter 2006 filings numbered 102,949, down 73.0 percent as compared to
total filings for the first quarter in 2005 at 381,743. The small number of
first quarter 2006 filings represents the lowest number of quarterly filings in
the last 20 years.
On an annualized basis, 1 in every 261 households filed bankruptcy in the first
quarter of 2006 as opposed to 1 in every 73 households in the first quarter of
2005. (Household numbers are based on 2005 estimates by the US Census.) First
quarter 2006 Chapter 7 consumer filings, providing consumers with the greatest
relief of their debts, are 80.1 percent lower than Chapter 7 filings in first
quarter of 2005. First quarter 2006 Chapter 13 consumer filings, requiring
consumers to repay a part of their debts, are 53.6 percent lower than Chapter
13 filings in first quarter of 2005. However, the number of Chapter 13 filings
in first quarter 2006 represents a much larger percentage, 45.7 percent, of the
Chapters filed as opposed to historic rates of 29.0 percent.
Chris Lundquist, Founder of Lundquist Consulting, Inc. has over 16 years of
experience in the bankruptcy industry, publishing high quality statistics and
performing qualitative and quantitative studies on the subject. Lundquist
Consulting statistics are quoted in research papers and media articles as well
as used by government entities for policy planning and legislative support
papers. Regarding the current filing rates, Mr. Lundquist stated, "While the
decrease in filings in the 1st quarter is good news, bankruptcy rates appear to
be increasing steadily towards previous levels. Since November of 2005, filing
rates have increased 4-fold and now average over 2,000 per day. At the same
time, the percent of Chapter 13s filed has been decreasing steadily from nearly
60 percent in November of 2005 to less than 40 percent in March of 2006. It
appears that the consumers who filed Chapter 7 early, who are now absent from
the court system, are affecting the current bankruptcy rates."
| 1st Quarter Growth in Consumer Bankruptcy
Filings by Region (in percent) |
| Region |
2006 |
2005 |
| South (West) |
-73.3 |
0.3 |
| South (East) |
-68.2 |
-6.2 |
| Pacific |
-79.1 |
-11.1 |
| Northeast |
-74.2 |
-1.0 |
| North Central (West) |
-73.3 |
3.6 |
| North Central (East) |
-71.4 |
1.8 |
| Mountain |
-81.2 |
-0.8 |
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All regions showed a
significant decline in filings for first quarter 2006. The Mountain region
showed the greatest decline in first quarter filings at -81.2 percent, whereas
the area of least decline was seen in the South (East) at -68.2 percent. The
largest volume of first quarter 2006 filings can be found in Georgia at 7,755
filings, followed by Michigan at 6,189 and Ohio at 5,565. For Regional
definitions, please visit our site at
www.nbkrc.com/regionaldef.html. |
Bankruptcy trends, statistics and analytics are updated weekly
and available through the National Bankruptcy Research Center (NBKRC), a
product offered by Lundquist Consulting, Inc. to clients on a subscription
basis.
About the National Bankruptcy Research Center
The National Bankruptcy Research Center (NBKRC) is the resource for
bankruptcy research, financial planning and economic evaluation. The data and
analytics found at the NBKRC provide subscribers with the most accurate,
comprehensive and timely bankruptcy statistics anywhere in the industry.
Subscribers can obtain information online at
www.NBKRC.com or through weekly updates sent directly to them.
Subscribers include investment banking firms, securities exchanges, government
entities, mortgage brokerages, analysts, banks, members of the media and online
providers of economic and financial research.
About Lundquist Consulting, Inc.
Lundquist Consulting, Inc., founded in 1989, specializes in information
engineering. The firm brings over fifteen years of expertise in customized data
processing solutions, consulting services and research and analytics with a
strong emphasis in bankruptcy systems and statistics. LCI has been working in
the financial services and technology industries since it's inception. Over
that time our principals have served on several industry steering and ad hoc
committees in the areas of financial counseling, risk management, and
technology. LCI has performed operational studies and worked with industry
executives and government entities on developing new strategies for process
improvement, risk management policy, and position papers in support of pending
legislation.
www.LundquistConsulting.com.
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