WASHINGTON — Consumers spent so freely during the recession that record numbers found themselves in heavy debt and filed for bankruptcy.

        Personal bankruptcy filings rose 15.2 percent to a total of 1,464,961 in the 12 months that ended March 31, the Administrative Office of the U.S. Courts reported Thursday.

        Filings by businesses rose 10.7 percent to 39,845, including Enron's Dec. 2.

        Greater Cincinnati's bankruptcy filings outpaced that increase, rising about 27 percent for the same 12-month period. The number of bankruptcies filed in the Cincinnati and Covington courts grew from 9,972 in the 12 months ended March 2001 to 12,699 in the 12 months ended March 2002.

        Year to date, the number of local bankruptcies is on pace to surpass 2001's record total of 12,497.

        Individuals account for about 97 percent of all bankruptcy filings.

        Consumers lured by sales, car deals and low interest rates spent heartily, said Samuel Gerdano, executive director of the American Bankruptcy Institute, a group of bankruptcy judges, lawyers and experts. The strong spending helped make the recession shallow but added to household debt, he said.

        “Consumers did their part to make the recession a recessionette,” he said. “Consumers still have confidence in the economy.”

        Mr. Gerdano noted that consumers were attracted by free-financing deals on vehicles and that lower interest rates brought a surge in mortgage refinancing that put more spending money in people's pockets.

        Consumers now are keeping the recovery on track. They shopped with more gusto in April, increasing retail sales 1.2 percent, the Commerce Department said Tuesday.

        The majority of consumer bankruptcy filings are filed under Chapter 7 of the U.S. Bankruptcy Code, which allows people to dissolve their credit-card and other debts. Chapter 7 filings during the 12-month period jumped 17.2 percent, to 1,059,777.

        In return for having debts erased, people in Chapter 7 cases often turn their property over to a bankruptcy trustee, except for basic necessities such as a car, clothing and work tools. Property with value is sold to pay creditors. Debtors generally are allowed to keep some personal items and possibly some of the equity in their home, depending on state laws.

        By contrast, filings under Chapter 13 — in which people repay debts over time in accordance with a court-approved plan — rose 10.2 percent to 433,107.

        The House and the Senate have approved legislation that would make it tougher for people to wipe out debt in bankruptcy. It is now being negotiated by the two houses, and President Bush has indicated that he would sign it.

       Enquirer reporter Amy Higgins contributed to this report.

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