Bankruptcy rates decline for first time since 2006

Bankruptcy rates decline for first time since 2006

For the first time since 2006, bankruptcy rates around the country have begun to decline. Although the United States economy is not yet considered to be booming, the decrease in personal bankruptcies is interesting.

With job loss slowing down and the charging off of credit cards reaching record low levels, the health of consumer credit is beginning to show an up-turn in Mesa. Additionally, consumers in Arizona and elsewhere have decreased spending in these past few years of the recession and focused their money on debt repayment. These small changes have proven to be beneficial to the economy since the number of bankruptcies filed throughout the U.S. have decreased.

Because the improvement in the health of consumer credit seems to be based solely on consumers cutting back, it is hard for analysts to predict what will occur in this year's economy. Things have finally calmed down a bit for credit card holders and issuers since changes in bankruptcy law were implemented in 2005, leading to a deluge of bankruptcy filings prior to the date the new law went into effect.

While the decline in bankruptcy sparks hope, those facing foreclosure, debt collection and bankruptcy in Mesa still need practical and relevant help. When facing debt issues that are out of your control you should consider speaking with an attorney who specializes in bankruptcy and debt-related issues. Rather than waiting to see what happens with the economy, it is wise to deal with debt before it continues to grow.

Source: Collections&CreditRisk, "Bankruptcy Rates Shows First Decline Since 2006," Jan. 17, 2012

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