Consumer bankruptcy filings rose 40% in 2007 as housing-market turmoil and increasing consumer debt levels led more people to seek protection from creditors.
The American Bankruptcy Institute, using National Bankruptcy Research Center data, said total consumer filings rose to 801,840 in 2007 from 573,203 in 2006.
ABI Executive Director Samuel J. Gerdano said the situation is likely to worsen in 2008. "The roughly 40% spike in consumer bankruptcies during 2007 presages even higher filings this year, as the heavy consumer debt load is made worse by the home mortgage crisis," Mr. Gerdano said.
Just another sign of a general economic downturn.