Friday, December 14, 2012

Bankruptcy filings fall for 22nd month

In Colorado during November, total bankruptcy cases filed fell 15.7 percent, year over year, to 1,851 cases. During November 2011, 2,197 cases were filed. November 2012 was the 22nd 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:

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

In year-to-date totals from January through November, 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. Totals remain well above what they were during the days the of the dot-com boom, however.

Bankruptcies most recently peaked during 2010, which was also a very active year for foreclosures. Since 2010, both bankruptcies and foreclosures have declined, reflecting declines in households taking on new debt.