On behalf of Law Offices of Mark M. Kratter, LLC on April 11, 2012
Many Connecticut residents and others across the country are starting to bounce back from the effects of the Great Recession and are beginning to get their finances in order. In the last few years, many individuals filed for bankruptcy because of financial conditions out of their control. Yet, according to the latest financial information, the number of personal bankruptcy filings is expected to keep decreasing for at least the remainder of 2012.
The first quarter decrease in consumer bankruptcy filings -- between 8 and 10 percent below the levels for the same time period in 2011 -- is credited to the nation's overall economic improvement. The current year is also projected to have fewer consumer bankruptcies because of continued economic growth.
Consumer bankruptcy filings are expected to fall 4 to 5 percent beyond the 12 percent decline recorded for 2011. However, they are expected to moderate as banks increase their lending customer base and give more customers larger loans and credit lines. The decline in personal bankruptcy filings is also credited to the pickup in the real estate market and the improvement in the job market, along with consumers lowering their debt level and the tightening of loan guidelines initiated by the banks.
For some residents nationwide and in Connecticut, the improving economy has given them a chance to improve their financial situations. This has thus reduced the number of consumer bankruptcy filings. However, consumer bankruptcy remains a viable alternative to those who have been victimized by spiraling debt due to circumstances they can no longer control. In such instances, filing for bankruptcy protection may offer debt relief while also laying the ground work for a return to financial stability.
Source: MarketWatch, "U.S. personal bankruptcies to fall further: Fitch," Mia Lamar, April 3, 2012
