Increases expected in bankruptcies

Northwestern Financial Review, Jan 1, 2001

Strong consumer spending combined with a slowing economy will boost personal and business bankruptcy filings over the next few years, according to lenders. In addition, credit card firms anticipate higher charge-offs and losses. Although bankruptcies have declined since reaching a record of 1.44 million in 1998, Visa U.S.A.

predicts the number of personal and business bankruptcy filings will grow to 1.7 million by 2002. SMR Research predicts a 10 percent to 20 percent jump in 2001. George Yacik, vice president of SMR, said subprime lenders would see more customers as bankruptcy filings increase. .'