It looks like the predictions of decreasing demand for debt relief services is coming true in all sectors now. As I’ve been saying, without consumers cleaning out their debt through some means and creditors not extending credit in buckets like they were before, demand for debt relief services will be down.
This is the latest from the American Bankruptcy Institute.
The total number of U.S. bankruptcies filed during the first six months of 2011 dropped 8 percent over the same six-month period in 2010, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 745,968 during the first half of calendar year 2011 (January 1-June 30), compared to 810,209 cases filed over the same period in 2010. Total bankruptcy filings increased 4 percent, however, during the second quarter of 2011 (April 1-June 30), which totaled 379,790, from the 366,178 filings in the first quarter of 2011 (January 1-March 31) due to an increase in consumer bankruptcy filings.
“The broad trend of a leveling or even decline in consumer bankruptcies in tandem with a sluggish economy is a reflection of the deleveraging of household debts and tightening of consumer credit over the past year,” said ABI Executive Director Samuel J. Gerdano. “Should these trends persist, we expect to see fewer consumer bankruptcies in 2011 than were filed in 2010.”
Filings by individuals or households with consumer debt decreased 8 percent to 721,288 for the six-month period ending June 30, 2011, from the 2010 first-half total of 781,150. Consumers filing for chapter 7 protection decreased 9 percent to 518,097 during the first half of 2011 from 571,417 during the first six months of 2010. Consumer chapter 13 filings dropped as well, decreasing 3 percent as 202,292 consumers filed for chapter 13 in the first half of 2011, down from 208,778 during the first half of 2010. The 367,486 total consumer filings for the second quarter of 2011 showed a 4 percent increase from the 353,802 total consumer filings in the first quarter of 2011.
The 379,790 total filings for the second calendar quarter 2011 (April 1-June 30) represented a 10 percent decrease from the second quarter 2010 filing total of 422,061. Consumer filings also decreased 10 percent from 407,609 recorded in the second quarter of 2010 to 367,486 filings in the second quarter of 2011. Business filings decreased 15 percent from 14,452 in the second quarter of 2010 to 12,304 filings in the second quarter of 2011.
The 1,529,560 total filings for the 12-month period ending June 30, 2011, represented a 3 percent overall decrease from the same period in 2010, which totaled 1,572,597. The bankruptcy filing rate per thousand U.S. residents totaled 4.85 for all chapters during the 12-month period ending June 30, 2011, as 3.44 Americans per thousand filed for chapter 7 while 1.37 per thousand filed for chapter 13 bankruptcy.
Nevada maintained its position as the state with the highest per capita filing rate in the country, with 10.13 residents per thousand filing in all chapters, and also had the highest per capita filing rate for chapter 7 filings at 7.62. The state with the highest per capita filing rate for chapter 13 bankruptcy was Alabama at 3.92 per thousand for the 12-month period ended June 30, 2011.
Non-business filings for the 12-month period ending June 30, 2011, were down to 1,477,426, a 2 percent decrease from the 1,512,989 total non-business filings over the same period in 2010. Business filings for the 12-month period ending June 30, 2011, totaled 52,134, down 13 percent from the 59,608 business bankruptcy petitions filed in the 12-month period ending June 30, 2010. – Source
Bankruptcies in July 2011 are down 18 percent from July 2010 filings.
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