U.S. Consumer Bankruptcy Filings Report

by San Antonio Attorney

The consumer bankruptcy filing in the United States are down by 8 percent in the past 6 months from the same time period in 2010 as people reduce debt and the country’s financial state is recovering, based on the data which was published on Tuesday.

American Bankruptcy Institute has reported that during the first half of last year, there were 770,117 consumer bankruptcy filings and it fell to 709,303 in the first half of 2011.

According to the data, consumer bankruptcy filings in June were also down by 5 percent from 126,270 in June 2010 to 119,768.

The consumer bankruptcy filings for the first quarter of 2011 in the U.S. fell by 6 percent from the same time last year.

More people filed for consumer bankruptcy in 2010 than any year from 2005. It rose 9 percent in 2010 compared to 2009, reaching a total of 1.53 million filings. The reason was that the Congress passed a legislation to make it much harder for individuals to get a debt discharge under the bankruptcy court’s protection, according to American Bankruptcy Director Samuel J. Gerdano.

The pace of consumer bankruptcy filings slowed down in the fourth quarter of 2010, with lesser petitions in October and November compared to the same period in 2009.

Gerdano said that the drop of consumer bankruptcy filings for the past 6 months have demonstrated the persistent efforts of people to cut down household debt and also the general pull away from consumer credit.

The United States economy is recovering slowly from its severe economic downturn in 2007 up to 2009, based on the report. The unemployment rate in the country at the outset of the year 2011 had fell from 9.7 percent at the beginning of the year 2010 to 9 percent.

Bankruptcy filings settling down is great news for the economy but if your struggling with debt that statistic is meaningless.  A San Antonio Attorney can help individuals and businesses with filing for bankruptcy protection.

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