Personal Bankruptcies Rise; Firms’ Filings Fall

Personal bankruptcies continued to rise to record levels, spurred by increased borrowing, while bankruptcy filings by businesses declined 7.4% in fiscal 2003, U.S. court officials said.

Personal bankruptcy filings, which made up 97.8% of all cases, rose 7.8% to 1.63 million in the fiscal year ended Sept. 30, the Administrative Office of the U.S. Courts reported. Business filings fell to 36,183 from 39,091.

“The drop in business bankruptcies is more reflective of current economic conditions, as opposed to the consumer side, which is more of a lagging indicator,” said Sam Gerdano, chairman of the American Bankruptcy Institute.