Friday, September 28, 2012

Bankruptcy filings down for 19th month in a row

In Colorado during August, total bankruptcy cases filed fell 16 percent, year over year, to 2,236 cases. During August 2011, 2,663 cases were filed. August was the 19th month in a row in which bankruptcies declined year over year,following three years of growth from 2007 to 2009.

The first graph shows the year-over-year changes in bankruptcy case filings since January 2007:

This sustained decline in bankruptcy filings suggests that consumers continue to get a handle on debts now that more than three years have passed since the beginning of the national 2007-2009 recession.

In general, bankruptcy filings are about where they were during 2004, although they are up significantly since since 2006 following the implementation of the 2005 Bankruptcy Act (discussed here).

In year-to-date totals from January through August, bankruptcy filings have fallen for the past two years, are now on a level similar to what was experienced during 2004 which was a non-recessionary period.