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San Jose Bankruptcy Attorney comments on the decline in November bankruptcy filings.
Bankruptcy filings were down in November, but 2009 is still on pace to post a four-year high in bankruptcies, and may reach a total of 1.5 million for the year. The number of bankruptcies is the highest since the 2.08 million bankruptcies filed before the 2005 bankruptcy reform law went into effect.
The number of bankruptcies was down 12 percent from October, but up 26 percent from November, 2008, according to Automated Access to Court Electronic Records, which is part of Jupiter eSources LLC in Oklahoma City. Total bankruptcy filings for 2009 are at 1.33 million, up 21 percent from 2008.
Commercial bankruptcies declined 13 percent from October and are seven percent below the yearly average of 6,424 per month. According to AACER, From January to November this year, 71 percent of U.S. bankruptcy filings came under Chapter 7, while 28 percent came under Chapter 13 and most of the rest under Chapter 11.
The total number of bankruptcy filings for the third quarter rose 33 percent over the third quarter of 2008. The 45,510 business bankruptcies recorded during the first three months of 2009 already exceed the total for 2008, and the number of consumer bankruptcies is 33 percent higher than the same time period in 2008.
Given that bankruptcy is a lagging economic indicator, the number of consumer and business bankruptcy filings may continue to climb for a year or more after any economic recovery takes hold.
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