Personal bankruptcies highest since 2005

Reports show surge in filings due to the housing slump and credit crunch; home foreclosures called 'leading impetus.'

March 4 2008: 5:40 PM EST

WASHINGTON (Dow Jones/AP) -- Personal bankruptcy filings climbed last month to their highest level since 2005, when Congress enacted laws aimed at discouraging such filings, and experts predicted more than a million Americans will seek bankruptcy protection this year.

The American Bankruptcy Institute, citing data from the National Bankruptcy Research Center, said 76,120 people filed for bankruptcy in February, a 15% increase from January. Business bankruptcies also surged, climbing to a four-month high of 4,326, according to Jupiter eSources, which tracks business and personal bankruptcy filings.