Bankruptcy filings fall 55% in state for quarter

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Bankruptcy filings fall 55% in state for quarter
2006-09-01
Alabama bankruptcy filings dropped 55 percent in the second quarter compared to the previous year, fresh evidence that last October's tough bankruptcy law is accomplishing its goal, figures released Monday show. There were 4,805 personal and business filings in Alabama from April through June, down from 10,913 during the same period a year earlier, according to American Bankruptcy Institute, a Washington-based research group. The story in Alabama was repeated across the nation, where bankruptcy filings fell to the lowest level in five years after a federal law that went into effect Oct. 17 made it harder for individuals to seek protection from creditors and avoid paying their debts. Court officials reported Monday that 1.48 million personal and business bankruptcies were filed across the nation in the 12 months ending June 30, a 9.3 percent drop.
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