ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Wednesday, March 5, 1997 TAG: 9703050093
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
DATELINE: LOS ANGELES
SOURCE: Associated Press
The number of Americans filing personal bankruptcies last year surged past 1million for the first time, intensifying criticism that too many Americans take court protection from creditors too lightly.
Figures provided by CDB Infotek, a public records research firm, showed 1,242,700 filings, up 35 percent from 918,964 in 1995. CDB said it surveyed every U.S. bankruptcy jurisdiction, using the courts' own on-line access services to gather data.
A fraction of those filings are commercial liquidations, typically of small businesses.
The vast majority are personal property liquidations, filed under Chapter 7 of the U.S. Bankruptcy Code, or personal financial reorganizations under the code's Chapter 13, which provides a shield while debtors and creditors work out repayment plans.
The Visa credit card company, whose members lose billions of dollars a year to bankruptcy filings, also checks the bankruptcy courts. Its studies showed consumer bankruptcies up 26.6 percent, from 883,000 in 1995 to 1,117,000 last year, said Kenneth Krone, senior vice president of Visa USA.
``We're concerned that people are rushing into bankruptcy without looking at alternatives,'' said Krone. Test advertising aimed at getting consumers into other options such as credit counseling programs has shown promise and is being expanded, he said.
LENGTH: Short : 36 linesby CNB