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"Bankruptcies lag the economy, and you won't see any effects of a better economy for at least six months, and perhaps 12 to 18 months," he said. "Bankruptcies are a last resort for many people, and you're seeing filings now that typically arise from problems six to 12 months ago."
The full-year record for bankruptcy filings was set in 2005, when 2.08 million petitions were filed.
More than 600,000 of these came in the first two weeks of October 2005, ahead of changes to the U.S. Bankruptcy Code that made it harder for consumers to erase their debts and for businesses to restructure without interference from creditors.
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, AACER said.
Consumers often use Chapter 7 to get a new start on their financial lives. Chapter 13 lets people discharge some debts. Businesses typically use Chapters 7 and 11.
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