According to statistics released by the American Bankruptcy Institute, a non-partisan insolvency research and education organization, California consumers and businesses filed by far the largest number of bankruptcies in the U.S. during the first quarter of 2010. The Central District of California, which includes the greater Los Angeles area, had the highest rates of any district in the nation.

The data collected reflects both business and personal bankruptcy filings under Chapter 7, Chapter 11 and Chapter 13 of the U.S. Bankruptcy Code.

The numbers appear to reflect a virtually unprecedented level of insolvency among California businesses and consumers. An astonishing 8.3 percent of the 388,148 bankruptcies filed in the U.S. in the first quarter were filed in the Central District of California.

A total of 32,236 bankruptcies were filed in the Central District between January and March. 60,523 bankruptcies were filed in California during that period. Florida, the state with the second highest total bankruptcy rate, didn't even come close to California's numbers: 26,404 bankruptcies were filed in Florida during the first quarter.

Data Shows Bankruptcy Filings Back Up to Pre-2005 Levels

The American Bankruptcy Institute's data also shows that the 2005 bankruptcy law called BAPCPA had only a temporary effect on bankruptcy filings. The law was intended to reduce the overall number of bankruptcy filings and to force most consumers into filing Chapter 13, which requires them to repay at least a portion of their debts.

The number of bankruptcy filings nationwide indeed dropped sharply between 2005 and 2006. A total of 2,078,415 bankruptcies were filed in the U.S. in 2005, while only 617,660 were filed in 2006.

California filings showed a similar drop after the 2005 bankruptcy law was passed: a total of 166,709 were filed by businesses and consumers in 2005, but only 39,285 in 2006.

Since that time, however, the recession, unemployment, the housing crisis and other factors contributing to insolvency have driven bankruptcy rates back up -- to levels exceeding those before the law was passed. In 2009, 209,661 individuals and businesses filed for bankruptcy in California alone. The nationwide total was 1,473,675.

Nor did the law succeed in reducing the number of consumers who petitioned for Chapter 7 relief as opposed to Chapter 13 relief. In 2009, 155,224 individuals -- over 77 percent -- filed for Chapter 7 personal bankruptcy, whereas only 45,180 opted for Chapter 13. In 2006, slightly more than 74 percent filed under Chapter 7.

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