Personal bankruptcies topped the 1 million mark in the first nine months of the year, the first time it has done so in four years, according to an industry research firm released Friday.

The personal bankruptcies were up 35% from the same period in 2008, according to the report from the American Bankruptcy Institute (ABI).

“Bankruptcy filings continue to climb as consumers look to shelter themselves from the effects of rising unemployment rates and housing debt,” said ABI executive director Samuel Gerdano.

The recession triggered more individuals earning $40,000 or more per year and those with associate or bachelor degrees to file for bankruptcy in 2008 than in years past, according to the annual Consumer Bankruptcy Demographic Report released by the Institute for Financial Literacy in June, and the organization expects the trend to continue.

“The folks going into bankruptcy are reflective of the middle class debtor,” said Leslie Linfield, executive director of the Institute for Financial Literacy. “The biggest problem is that people are over extended on their credit. It’s been the perfect storm of credit card debt and mortgage debt leading to delinquencies.”

Source/Full Story: money.cnn.com
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