The number of personal bankruptcy filings rose 11% to 102,686 in February compared to a month earlier, according to the American Bankruptcy Institute and the National Bankruptcy Research Center, but so far the rise has slowed from 2010.
Compared to a year ago, personal bankruptcies fell 8%. While it is still early, the first few months of the year could indicate that consumers will not repeat the surge in filings in 2010. More than 1.6 million consumer bankruptcy filings were reported last year — the highest level in five years.
“Though consumers are striving to reduce their debt burden, high unemployment and a still-poor housing sector continue to fuel new bankruptcies,” Samuel J. Gerdano, the American Bankruptcy Institute’s executive director.
For now, the slower pace of filings can be attributed to consumers saving more and paying down their debts, but also because less credit is available, which makes it harder to incur new debts.
