More individual Americans and U.S. businesses are taking the last dreaded step in personal financial failure with over 1.43 million new bankruptcy petitions filed in 2009.

Using data collected from the 90 bankruptcy districts in the country, the National Bankruptcy Research Center reported that the overall number of bankruptcies for the year is up 32 percent when compared to 2008. December, usually a slow month, was particularly bad with bankruptcies increasing 22 percent when compared to the same month in 2008.

Arizona, one of the epicenters of the real estate collapse, was at the top of the list with a 77 percent increase. Rounding out the top five fastest-growing bankruptcy states are Wyoming (60 percent increase), Nevada (59 percent), California (58 percent) and Utah (57 percent.)

Nevada had the highest overall percentage of filings.

As you may have guessed, the massive increase is largely the result of unemployment which now hovers around 10% and the bursting of the real estate bubble which has sent so many people into foreclosure.

Largely at the bequest of credit card companies, Federal bankruptcy laws were amended in 2005 to move more borrowers to file Chapter 13 bankruptcy, which encourages consumers to enter into debt-repayment plans.

However in 2009 more people were choosing to file Chapter 7 bankruptcy, which requires that debtors liquidate their assets to pay off debt and wipes clean the slate of other debt.

If you are considering bankruptcy, check out the book that we recently reviewed for more information about this tough choice.