Though last year witnessed 9 percent more consumer bankruptcy filings than the previous year, there was a gradual slowdown in personal filings at the end of 2010, the American Bankruptcy Institute (ABI) recently revealed.
There were 357,050 total consumer filings in the last quarter of 2010, representing a 0.4 percent decrease from the same quarter of last year and a 10 percent decrease from the third quarter of 2010.
Total bankruptcies have been rising since the passage of the 2005 bankruptcy reform, which made it more difficult for consumers to discharge their debts through Chapter 7 bankruptcy. According to ABI Executive Director Samuel J. Gerdano, the first sign of gradual decreases in bankruptcy filings "reflects a retrenchment in consumer spending associated with a down U.S. economy."
Among the regions with the greatest decreases in total bankruptcy filings during 2010 were the Eastern District of Tennessee, the Northern District of West Virginia and the Western District of New York, which witnessed drops in total bankruptcy filings during the year of 10.5, 10.3 and 9.9 percent, respectively.
If you are thinking about filing for bankruptcy in Maryland, please call us today at (410) 766-4044 or (301) 587-8900 for a free bankruptcy consultation. We are Maryland Bankruptcy Lawyers with over 25 years of combined experience in filing Chapter 7 and Chapter 13 bankruptcy's for Maryland residents.