November 17, 2008 (LPAC)--Personal bankruptcies skyrocketed in October, as the blowout of the entire global financial system impacts hard on households throughout the United States. According to the latest data, personal bankruptcy filings jumped by eight percent from September to October--on top of two years of steady increases. For the first time since the passage of the draconian 2005 law that restricted personal bankruptcy filings, the number of new filings in October passed 100,000, reaching a level of 108,595, or 4,936 bankruptcy filings per business day for the month. A recent study also found that people filing for bankruptcy in 2007 had 21 percent more secured debt, and 44 percent more unsecured debt--largely credit card debt--than those filing in 2001. Yet the average income of people filing for bankruptcy remained stagnant between the 2001 and 2007 data.

Personal bankruptcies jumped the greatest amount in states hit hardest by the blowout of the real estate bubble, where home foreclosures are among the highest in the country. The three leading states for personal bankruptcies--Nevada, California, and Florida, showed jumps in bankruptcy filings of 70, 80, and 62 percent over October 2007, in the latest data released.