• 05
  • July
    2011

According to the American Bankruptcy Institute and the National Bankruptcy Research Center, not as many Americans have filed for bankruptcy in the first half of 2011 as last year. By June, there were reportedly 709,303 personal bankruptcy filings, which is 7.9 percent lower than the same period last year.

Experts say the decline in bankruptcy filings are a good indication that the number of consumers filing for bankruptcy is in fact slowing. Last year, there were 1.5 million more personal bankruptcy filings than this year so far, which is the largest number of filings since Congress revamped the system in 2005, making it more difficult for Americans to file for bankruptcy protection.

June filings were 4.3 percent higher than May. But sources said month-by-month tallies are not adjusted for seasonal swings, so experts are not concerned about the increase. The numbers are still lower than last year.

In some states, bankruptcy filings have dropped significantly. Those states include Vermont, West Virginia, North Dakota and Washington, D.C.

Most states noticed a decrease in consumer filings, but Southwestern states still struggle with disproportionate bankruptcy filings, due the poor state of the housing market. Nevada, in particular, has had the highest number of bankruptcy filings per capita since the beginning of 2010, and its filings have declined 16 percent this year compared to last. California also continues to struggle, with the number of filings basically the same as last year.

Samuel Gerdano of the American Bankruptcy Institute said of the recent numbers, "The drop in bankruptcies for the first half of the year shows the continued efforts of consumers to reduce their household debt, and the overall pull back in consumer credit."

Source: Wall Street Journal, "U.S. Personal Bankruptcies Below 2010 Pace," Sara Murray, 5 June 2011.