ALEXANDRIA, Va. — Consumer bankruptcy filings for July came in at the highest monthly record since the new law went into effect back in October 2005, according to the American Bankruptcy Institute.

Based on data from the National Bankruptcy Research Center, ABI discovered that U.S. consumer bankruptcy filings reached 126,434 in July.  

The July 2009 consumer filing total represented a 34.3-percent increase nationwide from the same period a year ago and an 8.7-percent increase over the June 2009 consumer filing total of 116,365.

Chapter 13 filings constituted 28.3 percent of all consumer cases in July, slightly above the June rate. 

"Today's bankruptcy filing number reflects the sustained and growing financial stress on U.S. households," said Samuel Gerdano, ABI executive director.

"Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year," he added.