WASHINGTON — Bankruptcy professionals seem to be getting their arms around the new bankruptcy law requirements as bankruptcy filings increase among credit unions.

Credit union member bankruptcy filings more than doubled from 32,613 in the fourth quarter of 2006, the highest level for that year, soaring up to 70,200 filings by credit union members for the first quarter of 2007, according to CUNA's analysis of NCUA figures. Bankruptcy filings by credit union members skyrocketed to 115,642 in the fourth quarter of 2005 as the Bankruptcy Abuse Prevention and Consumer Protection Act became effective in October; filings plummeted to 31,811 the next quarter.

Bankruptcy reform was strongly lobbied for by CUNA and NAFCU. The law aims to stop abuse of the system by repeat filers and requiring more of those who can afford to pay part of their debts back to file for Chapter 13 payment plans rather than wiping their slate clean as in a Chapter 7 filing. In 2004, prior to the bill becoming law, 24% of filings were Chapter 13s. By first quarter 2007, that edged up to 28%. The credit union trades admitted that the abuse was a small percentage of filers, but it had to be curbed to lower expenses for all consumers.