Business

US says bankruptcies reach nearly 5-year high

U.S. bankruptcy filings have reached the highest level since 2005, government data released on Tuesday show, as the economy slows and the unemployment rate hovers just below double digits.

There were 422,061 bankruptcy filings between April and June, according to the Administrative Office of the U.S. Courts, up 9% from 388,148 in the prior three-month period, and up 11 percent from 381,073 a year earlier.

For the year ended June 30, there were 1.57 million bankruptcies, up 20% from 1.31 million a year earlier.

Consumer bankruptcies rose 21% to 1.51 million, and business bankruptcies rose 9% to 59,608.

Quarterly filings surpassed 400,000 for the first time since a record 667,431 bankruptcies were begun in the fourth quarter of 2005, when Congress overhauled federal bankruptcy laws and made it harder for people and businesses to file.

Full story: FOXBusiness.com – US Says Bankruptcies Reach Nearly 5-Year High

WATCH: FEWER MORTGAGES ‘UNDER WATER’