Resent data released by the American Bankruptcy Institute, personal bankruptcy files from 18% year-over-year, "Personal bankruptcy filings in July 2011 totaled 113,470, down from 137,698 personal bankruptcy cases in July 2010, a decline of 18 percent."
At first glance, this might look like a positive. More Americans are able to pay off their debts without creating undo burden on their way of life. However, with unemployment still at 9% and the jobless rate at 16%, it is more likely that less people are filing for bankruptcy because they cannot afford to administrative and legal fees. the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act made it more difficult and more expensive to file for Bankruptcy protection.
The drop in filings could be that the people in dire financial position cannot afford the file.
Until Next Time
Mike
Chicago Bankruptcy
