Bankruptcies Drop in August Amid Trend of Steep Rises
The number of Americans who filed for bankruptcy declined 2.5% during the summer months, reversing a trend of steep increases the last two years, a local public records information service reported Thursday.
In August, 109,549 people filed for bankruptcy nationwide, down from 112,318 in July and up 12% from August last year, according to CDB Infotek in Santa Ana. The year-to-year increase of 12% was well below the 25% to 35% increases of the last year, CDB said.
“Declaring bankruptcy may make sense in certain circumstances, and it appears that the number of people in those circumstances is declining,” said Rick Rozar, CDB’s president. “We’re not sure yet if this is a temporary slowdown or if this signals a long-term decrease.”
The summer slowdown in bankruptcy filings appears strongest in Florida, Wisconsin, New York and Michigan, the company reported. It appears weakest in Alabama, Georgia, Tennessee and Utah.