Bankruptcy News

Bankruptcy Filings Continue to Increase, Records Broken for Total Filings and Non-Business Filings 2003

The number of bankruptcy petitions filed in federal courts rose 7.1 percent in the 12-month period ending March 31, 2003, according to statistics released today by the Administrative Office of the U.S. Courts. Bankruptcy filings rose from 1,504,806 in the 12-month period ending March 2002 to 1,611,268 in the same 12-month time period in 2003. The number of filings continues to break records.

The previous highest total of filings for any 12-month period was in the 12-month period ending December 31, 2002, with a total of 1,577,651. Total bankruptcy filings first broke the 1.5 million mark in the 12-month period ending March 31, 2002.

Business filings in March 2003 totaled 37,548, down 5.8 percent from the 39,845 business filings in the 12-month period ending March 31, 2002. Non-business filings totaled 1,573,720, up 7.4 percent from the total non-business filings of
1,464,961 in the 12-month period ending March 31, 2002. This also is a record number of non-business filings for any 12-month period.

Filings per authorized judgeship have risen from 2,965 filings per judgeship in March 1992 to 4,973 in March 2003. No
new bankruptcy judgeships, which might be expected to absorb some of the workload, have been created since 1992.

The bankruptcy reform bill now being considered in Congress would authorize 29 new permanent bankruptcy judgeships and seven new temporary judgeships in 22 judicial districts.

Filings by Quarter

The number of bankruptcies filed during the second quarter of the Judiciary’s fiscal year 2003 (January 1, 2003-March 31, 2003) was 412,968. Filings for the Judiciary’s first quarter of fiscal year 2003 (October 1, 2002 -December 31, 2002) totaled 395,129.

Business and Non-business Filings
Years Ended March 31, 1998-2003

Year Total / Non-business / Business

2003 1,611,268 / 1,573,720 / 37,548

2002 1,504,806 / 1,464,961 / 39,845

2001 1,307,857 / 1,271,865 / 35,992

2000 1,301,205 / 1,263,096 / 38,109

1999 1,419,199 / 1,378,071 / 41,128

1998 1,423,128 / 1,370,490 / 52,638

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	Did You Know?
	Repossession is the power of the creditor to take back goods There are two types of loans: secured and unsecured. A secured loan is one that requires you to pledge something as collateral. For example, if you purchase a car, the creditor will usually require you to put up the car as collateral. On the other hand, an unsecured loan, does not require collateral. Using a credit card is usually an unsecured loan.