Bankruptcy filings rose 10 percent last year, to a record 1.78 million, according to figures released by the federal court system.
The Administrative Office of the U.S. Courts said
A flexible means test to assess individuals' ability to repay their debts is now in effect and forces people with incomes above their state's median level to file for personal bankruptcy under Chapter 13, which requires repayment of a portion of debts. The new law also limits the amount of time a debtor can spend in bankruptcy before filing a reorganization plan.
Five of the 20 largest Chapter 11 cases in U.S. history -- Delphi, Delta, Northwest,
Non-business filings, which backers of the tougher bankruptcy legislation say are increasingly driven by consumer debt, account for 98 percent of all filings.