The Arizona Republic is reporting that local bankruptcy filings declined significantly in October, 2011 from October, 2010 levels. October, 2010 saw 2,658 filings in the Phoenix area, while October, 2011 saw 2,074. This continues a nine month trend of year-over-year declines. Nationally, consumer bankruptcies declined nearly twenty percent. Follow this link to read the full article.
The decline in bankruptcies seems incongruent given the slow pace of the recovery from the Great Recession and the continued high unemployment numbers. Perhaps the decline is indicative of the sheer number of people who already sought bankruptcy relief, or it may be reflective of tightened consumer spending, or even a reduction in the amount of available credit.
Whatever the case may be, the decline is significant, and hopefully means the economy is going in the right direction.