Bankruptcy filings in the world's largest economy US climbed to a five-year high at 1.59 million last year, with non-business debts accounting for majority of the cases even though business bankruptcy filings declined.
In 2009, the count of such filings stood at 1.47 million. "Bankruptcy filings in the federal courts rose 8 per cent in calendar year 2010... Total filings remain at a five-year high," Administrative Office of the US Courts said in a statement on Tuesday.
The financial meltdown in 2008-09 had ravaged the American economy, that not only pushed many entities out of business but also caused large scale unemployment.
Out of the total 1.59 million bankruptcy filings in 2010, those related to 'non-business debts' alone accounted for 1.54 million.
"Business (bankruptcy) filings totalled 56,282, down seven per cent from the 60,837 business filings in calendar year 2009,"
the statement noted.
Going by the latest figures, chapter 7 filings -- that involves liquidation of assets -- jumped eight per cent to 1.05 million in 2010 as compared to the previous year. Meanwhile, chapter 11 filings, that allows reorganisation of business activities, declined last year to 13,713.
In 2009, the same was at 15,189.
The bankruptcy of then Wall Street major Lehman Brothers in September 2008 had pushed global markets into a tailspin and worsened the financial situation worldwide.
The over $14-trillion US economy is on the recovery path even though jobless rates continue to remain at elevated levels.
© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
Bankruptcy filings in the world's largest economy US climbed to a five-year high at 1.59 million last year, with non-business debts accounting for majority of the cases even though business bankruptcy filings declined.