How common is bankruptcy today?

It is very common. Between 1980, when there were more than 287,000 nonbusiness filings and 2005, when Congress made bankruptcy more difficult, the number of filings increased by a factor of ten. In that year, there were 2.39 million nonbusiness filings. In 2006, the number dropped, but since then it has been increasing, and the collapse of the housing market, credit crunch and sagging economy make market watchers expect more bankruptcies down the road.