Effects Of A Decrease In Bankruptcy Filings

As 2012 draws to a close in a few short weeks, bankruptcy statistics are showing some interesting signs of economic promise. According to recent data, filing numbers have continued to decrease over the last 10 months; good news for consumers, and bad news for some businesses.

Both Sides Of The Coin

For consumers, a drop in bankruptcy filing numbers is a sign that more people are finding their way out of overwhelming debt burdens. Nationally, bankruptcy filings are down by 16 percent for Chapter 7 cases and down by 10 percent for Chapter 13 cases. Texas bankruptcy filings have decreased over the first three quarters of 2012 for consumer bankruptcies; and are down by nearly 39 percent for business Chapter 11 filings, compared to only 14 percent on a national level.

While this decrease in filings is great news for consumers and businesses, there is one industry likely to feel the effects; debt relief companies. Operating for purposes of charging for debt relief services, these companies haven’t been the main go-to agency for help. Even though consumers and businesses are dropping out of seeking help through bankruptcy, they aren’t necessarily returning to these companies either. In fact, the demand for these services isn’t predicted to increase any time soon. Despite continued high debt loads, the rate of default is decreasing suggesting that many consumers and businesses are finding their way to better money management solutions.