Bankruptcies Rise 27% in 1996 to Record

Bankruptcy filings rose 27% last year to 1.2 million, the highest level ever, the government said. Filings under Chapter 7, in which a court liquidates most of the assets of an individual or company to pay off creditors, jumped 29% to 810,400 last year, according to the Administrative Office of the U.S. Courts. Chapter 11 filings, which allow companies to continue operations while they formulate a repayment plan, fell 8% to 11,911. Individuals accounted for more than 95% of the total filings.