The 623,399 U.S. bankruptcies filed during the first nine months of 2007 represented a 40 percent increase over the 444,789 cases filed over the same period in 2006, according to data released by the Administrative Office of the U.S. Courts.

The totals for both consumer and business filings during the first three quarters of 2007 also eclipsed those reached for the full calendar year of 2006.

“Bankruptcies are up sharply from a year ago this period, reflecting a growing vulnerability in household economics,” said Samuel J. Gerdano, executive director of the American Bankruptcy Institute. “The continued stress on the housing market will likely fuel a continuation of this trend into 2008.”

Filings by individuals or households with consumer debt increased 40 percent to 603,139 for the nine months ended Sept. 30, 2007, from 430,364 filings during the same 2006 period.

The overall percentage of consumers filing for Chapter 13 protection fell slightly from 41.4 percent during the first three quarters of 2006 to 38.9 percent over the same period in 2007. Conversely, the percentage of Chapter 7 consumer filers increased to 61.1 percent during the first nine months of 2007 from the 58.5 percent during the same period of 2006.

Business filings for the nine months ended Sept. 30 totaled 20,260, up 40.4 percent from 14,425 filings a year earlier.

Chapter 7 business liquidations totaled 13,290, up 57.6 percent from 8,433 business Chapter 7 filings a year ago. Chapter 11 business reorganizations rose from 3,644 in the first three quarters of 2006 to 4,130 in the same 2007 period of 2007, falling 13.3 percent.

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