The good news is that the number of bankruptcy filings across the country has dropped, compared to last year. The bad news is that 2010 was a record year for bankruptcy filings, and the number of bankruptcies is still expected to be nearly a million and a half in 2011.

A year-over-year comparison of July bankruptcy filings in 2010 and 2011 showed that this year's filings were 18 percent lower than last year's. In addition, July's numbers were lower than June's this year, showing a month-over-month 5 percent drop.

Why are bankruptcy numbers so high, even with the recent lower numbers? Many Fort Lauderdale bankruptcy lawyers would put most of the onus on high unemployment. As long as there is high unemployment, there will be large numbers of people in desperate financial straits. Many of them will need help, and some of the best help for people is the availability of Chapter 7 or Chapter 13 bankruptcy.

Currently unemployment is officially at 9.2 percent. However, when the number of people who have become so discouraged that they have stopped looking for a job, and the number of people taking part-time work just to survive, are taken into account, unemployment is really closer to 16.2 percent.

Why, with such dire economic conditions, are bankruptcy filings falling, even slightly? Many experts believe that there has been a widespread dropping off in consumer spending, and in borrowing. Because of this, some people that might have gotten into financial trouble are avoiding it. At the very least, it is taking longer for their financial situation to reach a point where they need to consider filing for bankruptcy protection.

Whatever the reasons for minor changes in the number of bankruptcies, the economy will ultimately determine when bankruptcy levels might return to a more typical level.

Source: Thomson Reuters News & Insight "U.S. consumer bankruptcies fall despite soft economy" Aug. 2, 2011