After a Historic Rise Bankruptcy Filings Beginning to Decline

Last year over 1.5 million people filed for personal bankruptcy. This was the highest level since the bankruptcy laws were reformed in 2005, making it harder for Americans to discharge their debts. Despite an economy that remains sluggish, new numbers seem to indicate the rates of bankruptcy filings are trending downward.

According to the National Bankruptcy Research Center and the American Bankruptcy Institute, consumer bankruptcies decreased by almost 14.8 percent in May 2011 compared to April 2011; and in comparison to May 2010, bankruptcy filings decreased by nearly 15.7 percent. The first five months of 2011 have also shown an 8.4 percent decrease compared to the same time period in 2010.

Bankruptcies are even beginning to decline in states with the highest rates of filings. Nevada, which had the most bankruptcies per capita in 2010 and so far in 2011, has still seen a 17 percent decrease.

Indiana has also been part of the rising tide of bankruptcies. Last year, the state ranked fifth in the country for personal bankruptcy filings, with 45,681 filings.

Time will tell if Indiana and the country have seen the worst of the bankruptcy boom.

Do You Need Relief From Mounting Debts?

If you have been hit hard by the economic downturn, and are now feeling saddled with debt, you are not alone. Many Americans have felt financial pain in recent years and have turned to bankruptcy for a fresh start.

If you are drowning in debt and not sure where to turn, contact an experienced bankruptcy attorney. A bankruptcy lawyer can explain the options available to you and assist you in selecting the best plan of action.

Sources: Bankruptcy Filings Decline; State bankruptcy rankings, 2010: Nevada holds its sad crown