Personal Bankruptcy Cases Hit Record

A rush of people seeking bankruptcy protection before a tough new law took effect pushed personal filings for 2005 to their highest level on record -- more than 2 million, according to new data.

Significant increases in consumer bankruptcy filings occurred in every region, according to the data being released today by Lundquist Consulting Inc.

The firm tallied 2.04 million filings last year, up 32% from 1.55 million in 2004 -- meaning that one in every 53 households filed bankruptcy petitions, the firm said.

The new law, which makes it harder to erase debts in bankruptcy, took effect Oct. 17.