2Q Bankruptcies Rose 5.9%

Personal bankruptcies rose 5.9% in the second quarter to a record 361,908, according to the American Bankruptcy Institute.The ABI report shows that bankruptcy filings are up 20,000 over first-quarter filings and that 1.38 million Americans have filed for bankruptcy over the past four quarters ended June 30. Personal bankruptcies for all of calendar year 1997 totaled 1.35 million. ABI executive director Samuel Gerdino said the dramatic increase in consumer filings can be attributed to sustained high levels of household debt and a fear that Congress will pass bankruptcy reform legislation this year. "Debtors' attorney's are aware that the bankruptcy code may change dramatically in the next few months and may be advising their clients to take advantage of the current law while it is still available," Mr. Gerdino said.