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Alabama bankruptcies rise in 3Q

BIRMINGHAM – Bankruptcy filings in Alabama rose dramatically during the third quarter as individuals and businesses struggled amid the economic downturn.

Court filings analyzed by the American Bankruptcy Institute showed there were slightly more than 8,000 personal and business bankruptcies filed in Alabama for the three months ending in October, a 27 percent increase from the same period one year earlier.

One bankruptcy attorney from Birmingham, Ted Stuckenschneider, said people are losing homes because of layoffs and the lagging economy.

He predicted Alabama bankruptcy filings will continue to rise in the fourth quarter because economic conditions have gotten worse since earlier in the year.