Quick Answer: Bankruptcy filings dropped 6.3% to 805,580 cases in the year ending September 2016, marking the lowest level since 2007. This decline signals reduced demand for debt relief services, though the slowdown in the rate of decrease suggests the economic recovery may be plateauing.
Data out today from the U.S. Courts shows that while the number of bankruptcy cases is still dropping, the decline is slowing.
Bankruptcy filings are the canary in the coal mine when it comes to debt relief demand. When all forms of debt relief like credit counseling and debt settlement are up, so are the number of bankruptcy cases. For example, remember the rush of debt settlement sales and credit counseling requests back in 2008-2010 and then the bottom started to fall out?
The court said, “For the third straight quarter, bankruptcy filings fell by less than 10 percent, with filings falling by 6.3 percent for the 12-month period ending September 30, 2016, compared with the year ending September 30, 2015. The three most recent reports follow a four-year period in which consecutive double-digit declines had occurred in every reporting period since December 2011.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
The September 2016 annual bankruptcy filings totaled 805,580, compared with 860,182 cases in the previous year, according to statistics released by the Administrative Office of the U.S. Courts. The number of bankruptcy filings was the lowest for any 12-month period since the year ending December 2007.
The Daily Money Brief — Free, at 10 AM
Money you may be owed, scams to dodge, and the fine print decoded — the consumer money news that affects your wallet, every weekday.
A national wave of bankruptcies that began in 2008 reached a peak in the year ending September 2010, when nearly 1.6 million bankruptcies were filed.”
Get Out of Debt Guy – Twitter, G+, Facebook
I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.
Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.
