According to preliminary numbers from the American Bankruptcy Institute, consumer bankruptcies are down 22% nationwide in January. The initial press release does not include a breakdown for Massachusetts bankruptcies, but, antidotal evidence in this office and in other bankruptcy law offices in Massachusetts, comes to the same conclusion.
The number of filings were 92,669, down from 118,146 in December, 2010. Nevertheless, the ABI predicts that filings will increase in 2011, noting that consumer bankruptcy filings have increased each year since the law changed considerably in 2005.
It should be noted that monthly bankruptcy numbers are adjusted by the ABI for seasonal swings, holidays etc. The Wall Street Journal bankruptcy reporting indicates that the ABI is encouraged by the news. However, as indicated above, the ABI’s own poll, published only days earlier, indicates that personal bankruptcy filings will increase this year.