Jump to Navigation

Bankruptcy filings drop in 2012

Newly released financial information indicates that fewer Americans are filing for personal bankruptcy thanks to renewed interest in saving. The numbers, which come from the Administrative Office of the United States Courts, show that personal bankruptcy filed by individuals dropped by about 13 percent during the first six months of 2012.

During the past two years, bankruptcies have dropped nearly 20 percent, according to the statistics. The decline ostensibly comes as Americans have cut up their credit cards and have begun to save more money in response to the continued recession.

Experts say that Americans have been slowly chipping away at their credit card debt while simultaneously increasing the amount of money they save each month. That means that these families are less vulnerable to economic jolts such as layoffs and other emergencies that could have prompted heavy borrowing without a safety net.

Financial gurus also say that fewer Americans have access to credit these days. Many people have paid down mortgages, purchased their cars outright, and slashed their credit card bills even as the economy continues to limp along, according to many analysts.

Although the trends appear positive, it remains to be seen whether Americans can truly switch their spending habits from excessive to restrained. Initial numbers and anecdotal evidence seem to support a lowered bankruptcy rate, but more time must elapse before our nation can truly declare itself personally financially solvent. But remember that there is no shame in having to file for bankruptcy. This economy has been hard on a lot of people.

Source: Boston.com, "Bankruptcies wane as US relearns how to save," Todd Wallack, Aug. 18, 2012.

No Comments

Leave a comment
Comment Information
Start Right Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Visit Our Bankruptcy Law Website Subscribe to This Blog's Feed
Office Locations

1115 Massachusetts Ave NW,
Washington, DC 20005
Phone: 202-559-1428

10512 Pohick Court,
Fairfax Station, VA 22039
Phone: 703-550-7030

6926 Seven Locks Road,
Cabin John, MD 20818
Phone: 301-890-4500

Toll-Free: 877-441-4076
Fax: 202-638-5858

Twitter link