Bankruptcies decline in 2011 but analysts cautious about 2012

On behalf of Ellett Law Offices , P.C. posted in 1. Personal Bankruptcy on Thursday, January 19, 2012
During the past few years as economic times have grown difficult, personal bankruptcy rates have seen a natural rise. Phoenix residents are all too familiar with filing for bankruptcy as the state of Arizona has been hit hard by Chapter 7 and Chapter 13 cases recently.
Some good news has been discovered by a Columbia law professor, who says that the national personal bankruptcy rate dropped 12% last year as compared to 2010. Roughly one in every 175 Americans found themselves filing for bankruptcy in 2011 – totaling an estimated 1.35 million people – as part of the first year-to-year drop in bankruptcy protection since 2006.
The Columbia law professor observed that the Pacific Southwest, which saw rising personal bankruptcy filings in 2010, was still struggling. In our backyard, Nevada repeated as the state with the highest bankruptcy rate and it also had one of the most bankrupt counties – Clark County, where Las Vegas is located – in America. Utah and California both had bankruptcy rates that ranked in the top-5 in the nation.
Ultimately this analysis is an encouraging sign, but the professor warned that the numbers might not be telling the entire truth. “Based on an increase in filings in November and December, and seasonal adjustment, there is some reason to think filings in 2012 might start edging up again,” he said.
So what does it all mean? Well, the country isn’t out of its cloudy economic situation quite yet. Financial insecurity faces so many Phoenix residents in the new year and no matter how encouraging this news is, some people must explore the option to file for bankruptcy. When you are confronted with tough personal bankruptcy decisions, bringing in an experienced bankruptcy lawyer can help you come to the right decision.
Source: Columbia Law School, “Personal Bankruptcy Filings Down 12 Percent in 2011, Says Law Professor,” Jan. 5, 2012
Tags: national bankruptcy rate, personal bankruptcy