Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, March 19, 1993 TAG: 9303190226
SECTION: BUSINESS PAGE: B11 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
PERSONAL BANKRUPTCIES REACH AN 8-YEAR HIGH
The number of Americans who filed for personal bankruptcy rose to a record in 1992 for the eighth straight year, a result experts attributed to the recession and to less embarrassment over filing.In an early sign that the economy is beginning to improve, however, the increase in personal bankruptcy filings reported this week was much smaller than in previous years.
Moreover, bankruptcy filings by businesses fell nearly 6 percent during the year, their first decline since 1989.
Doug Handler, an economist for Dun & Bradstreet Corp., said fewer large companies are failing, which curbs bankruptcies by smaller firms and suppliers.
Still, bankruptcy experts said the record number of individuals going to court to shed their debts indicates a major switch in how people view bankruptcy.
"I've seen the whole social attitude about bankruptcy change," said Suzanne Preudhomme, a contractor who handles Sears, Roebuck and Co.'s bankruptcy cases in Rockville, Md.
"Seven years ago, it was not socially acceptable to file for bankruptcy. It was a last-ditch effort. People realize now it's generally easy, and there is very little resistance given by creditors."
Personal bankruptcies accounted for nearly 93 percent of all bankruptcy filings in 1992.
A total of 971,517 bankruptcy petitions were filed nationwide, according to the American Bankruptcy Institute. Of those, 70,643 were by businesses. The total number of bankruptcy filings was up 2.9 percent in 1992 from the preceding year, the smallest gain in eight years and well below the 20.6 percent increase in 1991.
Virginia ranked 12th nationwide in the frequency of bankruptcies per household, with one bankruptcy filing per 81 households in 1992. - Washington Post