Personal bankruptcies up 41 percent

Consumer bankruptcies soared 41 percent in September from a year before and climbed from August, as high unemployment and the housing market crash took their toll, the American Bankruptcy Institute said on Friday. September filings totaled 124,790, the fourth-highest month since the bankruptcy law changed in 2005. Filings also rose 4 percent from August, even as recent reports have indicated that the U.S. housing market might be stabilizing and consumer confidence appears to be recovering. September's filings pushed 2009 consumer bankruptcies to about 1.05 million, the highest for the first nine months of a year since 1.35 million in 2005. The American Bankruptcy Institute said it expects consumer bankruptcies to climb to more than 1.4 million this year. The U.S. unemployment rate rose to a 26-year high in September at 9.8 percent, according to government statistics released on Friday.