When researchers at the National Bankruptcy Research Center recently looked at the number of personal bankruptcy filings in a month-over-month comparison, they found that June bankruptcy filings were up when compared to the number of filings in May. In fact, because June is usually a slow month for bankruptcy filings, the month-over-month comparison is actually a little more significant. The four percent increase actually is more like a ten percent increase when adjusted for past seasonal filing trends.

The better news, though, is that in a year-over-year comparison, the NBKRC found that personal bankruptcy filings (meaning filings under Chapter 7 or Chapter 13) are down for the first half of 2011.

The number of personal bankruptcy filings was down 8 percent for the first six months of 2011, when compared with the first six months of 2010. During those months there were 709,303 filings in 2011, but 770,117 filings in 2010.

Fort Lauderdale bankruptcy lawyers tend to agree with other experts who have attributed the drop in bankruptcy filings to a change in many people's spending habits as a result of the lingering bad economy. With the economic recession dragging on, changes in spending habits and use of credit have been in place in many households for a few years, and the resulting cutbacks and reduced risk-taking have also resulted in reduced numbers of bankruptcy filings.

However, the number of filings is still very high, as high unemployment hits more individuals and makes it very difficult for them to meet unexpected but necessary expenses such as medical bills.

As long as the poor economic situation continues, many people are going to need the fresh financial start that bankruptcy offers.

Source: Star Tribune "Bankruptcies down 8% in the first half of the year" 7/5/2011