By Mike Stetzer
In the week before October 17, 2005, the date when Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 became effective (BAPCPA), approximately 200,000 American consumers filed for bankruptcy protection.
Typically about 30,000 bankruptcy cases are filed each week.
For the month of October, more than 600,000 bankruptcy cases were filed nationwide; by comparison, in October 2004, filings totaled 130,679.
In the weeks since the new law went into effect, the rate of filings slowed dramatically.
In fact, 2005 was a record year for consumer bankruptcy filings.
According to the Administrative Office of the U.S. Courts, more than 1.74 million consumers sought legal protection from their creditors filing bankruptcy in fiscal year 2005, the highest number in history and a 10 percent increase from fiscal year 2004.
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