Tuesday, August 16, 2011
Bankruptcy Filings Down for First Half of 2011
Bankruptcies during the first half of 2011 dropped compared to the same time last year by approximately 8%. During the first half of 2010, 770,117 were filed, compared to the 709,303 filed during the first have of 2011. Also, according to the National Bankruptcy Research Center, the American Bankruptcy Institute reported 11,768 bankruptcies were filed in 2011 during the month of June. This is approximately a 5% drop from the same month of 2010.
While some I'm sure are jumping to the conclusion that this is a further sign of a recovering economy, this was reported prior to the recent downgrading of U.S. Treasuries by the S&P, which has contributed to violent swings in the stock market. Just as more and more people are starting to feel like they can finally see themselves situated in a posture of being able to pick themselves up slowly out of these times of heavy unemployment, Congress starts playing games with the economy. The President is blaming Congress, and Congress is blaming each other.
On a positive side, gas prices are slowly moving down, as the price of oil is down. Hopefully this trend will continue to allow people to have enough disposable income to get the economy moving again.
While bankruptcy filing are down, there are still many people needing relief, and seeking bankruptcy as a solution. Consumers continue to look at Chapter 7 and Chapter 13 bankruptcies as vehicles to allow them to tread water again. We will have to wait and see if this trend of lower bankruptcy filings continues. If you are thinking of filing bankruptcy, you should call a local bankruptcy attorney in your area for a consultation.