The number of personal bankruptcy filings across the United States is falling, at least a little bit. Looking at filings under Chapter 7 and Chapter 13 for the first six months of 2011, they are down 8 percent from the number of filings in the first half of 2010. In the past, the trends in Ohio and Kentucky have tended to mirror those of the nation as a whole. In the latest research from the National Bankruptcy Research Center, neither state is at the extremes of the above-average or below-average groups when it comes to number of bankruptcy filings.

In raw numbers, the NBKCR found that there were 709,303 personal bankruptcies filed across the country in the first half of 2011, compared to 770,117 at the same time last year.

The overall decrease is good news, but bankruptcy filings are still high. The poor state of the economy is keeping many people in a precarious economic position where an unexpected but necessary expense, such as a medical bill, can cause so much financial trouble that bankruptcy becomes necessary in order to afford people with a fresh start.

As if to provide some caution in the face of optimism over falling numbers of filings in a year-over-year comparison, the most recent month-over-month comparison showed that June bankruptcy filings were up 4 percent over filings made in May of this year.

In addition, the NBKCR pointed out that June would typically be a slow month for bankruptcy filings, so when adjusted for past seasonal trends, the June filings represent an increase more akin to 10 percent over the previous month's.

Cincinnati bankruptcy attorneys agree with the experts that attribute the overall decrease in bankruptcy filings to changes in spending habits across the country. People are spending less and using less of their available credit. Those are positive changes, but until the economy really improves, many people will be in danger of having financial difficulties. For those people, the availability of bankruptcy protection will be essential.

Source: Star Tribune "Bankruptcies down 8% in the first half of the year" 7/5/2011