Americans filed 1.4 million bankruptcy petitions last year, according to a National Bankruptcy Research Center report.  The 32 percent increase from 2008 makes 2009 the seventh worst year on record.

The report, released Monday, included data from the United State’s 90 bankruptcy districts and showed that Wyoming, Nevada, and California experienced the greatest increases from the year before with 77, 60, and 59 percent increases respectively.

Chapter 7 filings made up more than 42 percent of the 1.4 million filings.  Chapter 7 allows debtors to seize and liquidate assets to reduce debts owed.

Chapter 13 filings comprised 12 percent of the overall filings.  This form of bankruptcy is dubbed the “rehabilitation filing”, as it forces debtors to agree to payment plans.

In 2005, Congress made changes to the bankruptcy law making it more difficult for individuals to file.  Despite the changes, 2009 will go down in history as having one of the most personal bankruptcy filings on record.  The latest numbers are more than double that of 2007, the year that the U.S. recession began.