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Bankruptcy Filings Drop Again. Not Good News for Debt Relief Industry

By on August 3, 2012

Bankruptcy filings have been a good indication of the overall consumer demand or need for debt relief services. As bankruptcy demand declines, so does the demand for other debt relief options such as debt settlement, and credit counseling.

Data out just today shows a 14 percent drop in bankruptcy filings for the 12 month period ending June 30, 2012.

For the 12-month period ending June 30, 2012, filings fell for chapters 7, 11, 12, and 13 compared to filings in the 12-month period ending June 30, 2011.

Chapter 7 filings, which constitute 70 percent of all filings, fell 16 percent to 914,015 from the 1,083,671 Chapter 7 filings in the 12-month period ending June 30, 2011.

Chapter 13 filings, which account for 29 percent of all filings, fell 11 percent to 385,949 from the 432,333 Chapter 13 bankruptcies filed in the same time period in 2011.


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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

4 Comments

  1. DOOBIE

    August 6, 2012 at 1:57 pm

    I wonder if there will be an upward in late fall 2013, when the 8 year waiting period passes for all those debtors who rushed in before the BAPCPA effective date

  2. Rob P

    August 4, 2012 at 2:48 am

    In other Steve Rhodes news… Bankruptcy filings rise again. Not good news for debt relief industry as more people decide to “throw in the towel”. 

    • Steve Rhode

      August 4, 2012 at 1:22 pm

      Rising bankruptcy rates would be a positive sign for increased demand for debt relief services. With more consumers needing to turn to bankruptcy that would be an indication that more people were in need of exploring solutions.

      Again, the bankruptcy demand is more an indication of the size of the retail pool of customers for debt relief services.

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