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Article: Bankruptcies at record high.(Business)
- Article from:
- The Washington Times (Washington, DC)
- Article date:
- May 25, 2001
- Author:
CopyrightCOPYRIGHT 2001 News World Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Bankruptcy filings by consumers and businesses rose 17.5 percent in the first three months of the year as the economy slumped, according to the Administrative Office of the U.S. Courts. The 366,841 filings were the most ever in the first quarter.
The increase is a result of several factors converging, bankruptcy observers say: The economy is slowing down, with consumers spending less and employers laying off workers; and bankruptcy-reform legislation expected to be approved soon is spurring people to file for bankruptcy before it becomes harder to do so.
"People are losing jobs; there's a reduction of income," said Samuel Gerdano, executive director ...