Consumer bankruptcies jump 47.7 percent

WASHINGTON (Reuters) - Bankruptcy filings by U.S. consumers jumped 47.7 percent in April from one year ago as families cope with fallout from the subprime mortgage crisis, the American Bankruptcy Institute said on Friday.

The 92,291 bankruptcy filings in April also marked an increase of 7 percent from March, the non-partisan institute said.

"The sharp spike in consumer bankruptcies reflects the growing financial stress faced by American families, saddled with household debt and mortgage woes," said Samuel Gerdano, executive director of the institute. "We expect consumer bankruptcies to top 1 million new cases this year".

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Some Democrats in Congress this year unsuccessfully sought another change in the federal bankruptcy law to let bankruptcy judges reduce mortgage amounts to reflect the current fair value of a home. That move was opposed by Republicans and the banking industry.

Reuters