THE ECONOMY

* U.S. bankruptcy filings fell 6.5% in the third quarter, continuing a decline from last year’s record levels, the American Bankruptcy Institute reported. Filings declined 5.7% over the previous 12 months, with 1.35 million people and businesses seeking court protection from creditors during the year ended Sept. 30, down from 1.44 million in the previous 12-month period. “Sustained low interest rates have allowed consumers to clean up their balance sheets,” said ABI Executive Director Sam Gerdano. Low rates let people move their debt around among different creditors to cut monthly expenses, reducing the pressure to seek bankruptcy protection, Gerdano explained. Last year’s record number of filings--coming even as the economy continued to rally--helped push bankruptcy reform in Congress this year. The House of Representatives passed a bill in May that would force more debtors to repay at least some of what they owe. The Senate debated a similar, though less strict, measure and plans a final vote next year.