Bankruptcy Numbers Down 10 Percent
According to the American Bankruptcy Institute, bankruptcy numbers are down 10 percent from last year over the first nine months of 2011. This information comes from data provided by the National Bankruptcy Research Center.
According to the American Bankruptcy Institute, bankruptcy numbers are down 10 percent from last year over the first nine months of 2011. This information comes from data provided by the National Bankruptcy Research Center. The data shows that overall consumer filing for September 2011 is down to 108,517 from September 2010 numbers of 130,329. These numbers may come as a surprise due to the current economic state, but really represent the change in how Americans are spending and how little credit banks are now offering.
Business filings have also seen a decrease since 2010. Over the course of 2011, business bankruptcy numbers have come down 6 percent from the previous year. Businesses are decreasing how much debt they are taking on and holding on to finances like never before.
The trend for 2011 is that consumers are spending less money. This includes a decrease in accumulation of credit debt. Banks are also pulling back in terms of providing consumer credit. From housing loans to basic credit cards, consumer credit tools are becoming increasingly difficult for folks to get. It has become a renters’ market, and with less people being able to buy homes, there are fewer foreclosures and, in turn, less bankruptcy. This creates fewer filings of Chapter 13.
There is no end in sight when it comes to a major change in the economy or in unemployment numbers. This means that consumers today are going to have to understand that the economy will most likely continue to struggle for a number of years, and they must change the way they live their lives. This is the main reason for the lower number of bankruptcy filings. Americans will continue to change their spending, which will continue to create a decrease in numbers for bankruptcy.
Both consumers and businesses are getting much smarter with how they spend their money and how much debt they take on.
About the Company:
The Law Office of Rob R. Nichols is conveniently located in Woodland Hills, California. We are dedicated to providing you with the personal attention you need. You will not speaking with paralegals or secretaries, but assisted all along the way by a compassionate attorney who will be able to address all of your legal needs and help you through the legal process.
Rob R. Nichols
The Law Office of Rob R. Nichols
5850 Canoga Avenue, 4th Floor
Woodland Hills, CA 91367