The American Bankruptcy Institute, using data provided by Equip Systems Inc., has reported that people are filing bankruptcy less and less. Bankruptcy filings decreased in February 2015 by 13 percent as compared to February 2014. Specifically, the number of consumers (individuals) filing bankruptcy decreased by 10 percent while the number of businesses filing bankruptcy decreased by 21 percent in this comparison period.
Interestingly, total bankruptcy filings for the month of February 2015 were 62,740, an increase of 10 percent compared to the 59,050 filings in the month of January 2015. Despite this one-month upward change, analysts expect the overall number of individuals and companies filing bankruptcy to decline over the course of 2015.
According to a Reuters report, consumer bankruptcy filings may fall by 8 to 10 percent in 2015. This prediction by Fitch Ratings is based on expected improvements in the economy, low-interest rates, increased hiring and better household finances (including lower gasoline prices).
A Continued Trend of Fewer People Filing Bankruptcy
If true, this would continue a general trend of declining bankruptcy filings. In 2013, 1,011,732 bankruptcy filings were filed, compared to only 889,435 filings in 2014 – a drop of 12 percent from year to year and the first time total filings has fallen below one million in seven years.
The information noted herein was originally found in Volume 25, Issue 10 of Consumer Bankruptcy News, a publication of Thomson Reuters.