The American Bankruptcy Institute (ABI) recently released a report on the number of consumer bankruptcy filings in the United States for both December 2011 and the entire calendar year 2011. The results? Bankruptcy filings -- including Chapter 7 and Chapter 13 filings -- continued to decline at a rather significant rate.

Specifically, the ABI -- using data supplied by the legal technology firm Epiq Systems, Inc. -- indicated in its report that there were exactly 96,264 consumer bankruptcy filings in December 2011. This represented a 16 percent decrease from the 114,738 consumer bankruptcy filings in December 2010.

"The decline in total filings reflects the retrenchment in consumer spending associated with a down U.S. economy," said Samuel J. Gerdano, an ABI executive. "As consumers continue to deleverage their debt and access to credit remains tight, bankruptcy filings will continue to decrease."

Overall, calendar year 2011 saw a significant decline in the number of bankruptcies in the United States. To illustrate, there were approximately 1,379,113 bankruptcy filings in calendar year 2011, as compared with 1,561,008 bankruptcy filings in calendar year 2010 - a 12 percent decrease.

In addition, the ABI report found the following:

  • In calendar year 2011, there were 965,423 Chapter 7 bankruptcy filings, a 13 percent decrease from the 1,111,236 in calendar year 2010
  • In calendar year 2011, there were 401,588 Chapter 13 bankruptcy filings, an eight percent decrease from the 435,242 in calendar year 2010
  • In calendar year 2011, the states with the highest per capita bankruptcy filing -- total filings per 1,000 residents -- were Nevada (8.98), Georgia (7.35), Tennessee (7.34), Utah (6.53), and Alabama (6.37)

Interestingly, experts have indicated that the drop in bankruptcies is not necessarily indicative of an improving economy. In fact, they indicated that it may be nothing more than a sign that more financially troubled Americans are choosing to use their credit cards to cover expenses.

Regardless of your financial situation, contact an experienced legal professional to learn more about your rights and your options under Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Stay tuned for more from our San Antonio bankruptcy blog ...

This post is for informational purposes only and is not to be construed as legal advice.

Sources:

American Bankruptcy Institute, "Total bankruptcy filings decrease 12 percent in 2011, commercial filings fall 19 percent" Jan. 4, 2012

The New York Times, "Bankruptcy filings declined in 2011" Jan. 25, 2012