Bankruptcies are on the rise in a big way. Maryland, which ranks 21st out of 50 states for bankruptcy filings, has seen a dramatic increase in the number of people filing for bankruptcy since 2007, when the recession began.
In 2007, 11,200 bankruptcy cases were filed. In 2008 the number increased 46% and in 2009 the number again increased 36% for a total of 29,000 Marylanders filing for bankruptcy. This statistic includes business and personal filings.
Nationally, bankruptcies increased 20% last year. 1.6 million Americans filed for bankruptcy in the fiscal period ending June 30, 2010. This compares to 1.3 million filings for the same 12 month period ending June 30, 2009.
In October 2005 bankruptcy laws were changed due to people abusing the system. These recent figures have returned to levels prior to the 2005 changes.