Looking at the first six months of 2011, it appears that fewer people have filed bankruptcy petitions so far in 2011 than they did in 2010. Last year there were over 1.5 million bankruptcies filed in the United States. In the first quarter of 2011 there were 6% fewer cases filed than there were in the first quarter last year. In March the decrease was 8.2% compared to last March.
So why are there fewer people filing bankruptcy? Has the economy improved that much? Actually, even if the economy bounced back to its pre-2008 status, there has traditionally been a 6 month or greater delay in the effect on bankruptcy filings.
Some observers say that it is because of the reduction in the high unemployment rates. Others speculate that because credit has been less available in the past few years, fewer people have been able to accumulate enough debt to warrant filling for bankruptcy. Still others say that more consumer credit is available now which is allowing people to borrow and (if only temporarily) avoid the need to file bankruptcy. Another common belief is that mortgage foreclosures are taking much longer than they used to which takes away the urgency to file bankruptcy right away.
Whatever the reason for the decrease, it may not last. When you look at the statistics of bankruptcy fillings over a greater period of time you can see that while the number of bankruptcies filed in this country sometimes increases and sometimes decreases, the overall trend is a steady increase.
If you're struggling with overwhelming debt and would like to find out if bankruptcy may be a viable option for you. I offer a free 30 minute telephone consultation, where you can get all your questions answered.