Bankruptcy Filings on Decline: U.S. Courts Report
Bankruptcy filings for the 12-month period ending June 30, 2012, fell by 14% from one year prior, according to statistics released Friday by the Administrative Office of the U.S. Courts.
From June 30, 2011 to June 30, 2012, the courts received 1,311,602 petitions, compared with 1,529,560 filed in the 12-month period ending June 30, 2011.
The vast majority of bankruptcy filings involve predominantly non-business debts. For the 12-month period ending June 30, 2012, non-business filings—where the debts are predominantly personal or consumer in nature—totaled 1,267,167.
For the 12-month period ending June 30, 2012, chapters 7, 11, 12, and 13 all fell compared with filings during the 12-month period one year prior. Chapter 7 filings, which constitute 70% of all filings, fell 16% to 914,015. Chapter 13 filings, which account for 29% of all filings, fell 11% to 385,949.
Dallas-based bankruptcy attorney Charles Williams said credit unions are exposing themselves to “serious liability” by failing to properly perfect liens on automobiles, Credit Union Times reported in April.