By The Associated Press
Personal bankruptcy filings hit record level

Clerks at the nation’s bankruptcy courts processed a record 205,129 personal bankruptcy filings last week, and a private consulting firm estimates that a backlog of unprocessed filings could push the total to 300,000.

Hundreds of thousands of people have clogged the courts in recent weeks trying to beat a deadline of Monday, the day a new, more stringent law took effect.

Lundquist Consulting, a Burlingame, Calif., company that compiles bankruptcy statistics, said bankruptcy filings doubled from the previous week’s record of 102,863 filings. Lundquist expects around 300,000 filings this week because of the weekend filings and the backlog at the courts, said company analyst Jane Truch.

In Chicago, U.S. Bankruptcy Court clerk Ken Gardner called the 8,316 total filings on Friday and Saturday “beyond our imagination.” The office normally handles about 200 per day for the northern district of Illinois.

“We knew there’d be a rush – every time a fee or law changes, we get that. But this was 15 times the normal level of activity,” Gardner said Wednesday. Gardner’s Chicago crew didn’t leave the office until 1:30 a.m. Saturday, nine hours after its normal close.

The new law – the most sweeping reform of the U.S. Bankruptcy Code in decades – sets new limits on personal bankruptcy filings and requires people to get professional credit counseling before they file petitions. It prohibits most filers with above-average income from filing Chapter 7 petitions that allow debts to be wiped out.

Instead, people deemed by a “means test” to have at least $100 a month left over after paying certain debts and expenses will have to submit a five-year repayment plan under the more restrictive Chapter 13.

Supporters believe the changes will help rein in consumers who pile up credit card debt only to wipe it out with a Chapter 7 filing. Opponents say the law will hurt those who incur debt unexpectedly such as with health problems or lost jobs.

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On the Net:

U.S. Bankruptcy Courts: http://www.uscourts.gov/bankruptcycourts.html

General Dynamics’ third-quarter profit rises 16 percent

FALLS CHURCH, Va. (AP) – Defense contractor General Dynamics Corp., parent of Bath Iron Works, said Wednesday its third-quarter earnings grew 16 percent on sales growth across its business segments, surpassing Wall Street estimates.

Net income rose to $374 million, or $1.84 per share, from $322 million, or $1.60 per share, a year earlier.

Revenue also increased 16 percent, rising to $5.38 billion from $4.65 billion.

Analysts polled by Thomson Financial were looking for profit of $1.76 per share on sales of $5.25 billion.

Growth was led by the company’s information systems and technology business, which saw its sales jump 25 percent to $1.99 billion. Combat systems revenue grew 20 percent to $1.24 billion, while marine systems sales inched up 2 percent to $1.17 billion.

Revenue at the company’s Gulfstream business-jets unit were also strong, with aerospace sales rising 14 percent to $906 million.

Portland newspapers cut 21 jobs

PORTLAND (AP) – The Portland Press Herald and Maine Sunday Telegram, which announced a hiring freeze one week ago, have eliminated 21 positions, resulting in job losses for 15 employees.

The freeze was imposed in response to declining circulation and flat advertising revenue. Charles Cochrane, the newspaper’s president and chief executive officer, said the cuts, which included six unfilled positions, were needed to maintain the company’s financial health.

Cochrane said the industry is undergoing fundamental changes that may result in jobs being added at the newspapers’ online site, www.MaineToday.com, which is growing.

The Press Herald and Sunday Telegram are owned by The Seattle Times Co., whose flagship newspaper, the Seattle Times, also experienced recent job cuts.