by Calculated Risk on 7/05/2012 05:09:00 PM

From the American Bankruptcy Institute: Bankruptcy Filings Fall 14 Percent for the First Half of 2012, Commercial Filings Drop 22 Percent

The 601,184 total noncommercial filings for the first half of 2012 represented a 13 percent drop from the noncommercial filing total of 691,902 for the first half of 2011. Total commercial filings during the first six months of the year were 30,946, representing a 22 percent decrease from the 39,598 filings during the same period in 2011.

“We are on pace for perhaps the lowest total new bankruptcies since before the financial crisis in 2008,” said ABI Executive Director Samuel J. Gerdano. “With sustained low interest rates and weak consumer spending, we expect bankruptcies to stay at relatively low levels through the end of 2012.”

The 99,057 total bankruptcy filings for the month of June represented an 18 percent decrease compared to the 120,698 filings in June 2011.

Click on graph for larger image.

This graph shows the non-business bankruptcy filings by quarter using quarterly data from the ABI.

Note: The spike in 2005 was due to the so-called "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005". (a good example of Orwellian named legislation).

It is possible that consumer bankruptcy filings peaked in 2010, but filings might increase again next year as pre-bankruptcy act filers file bankruptcy again.

Earlier:
• Reis: Apartment Vacancy Rate falls to 4.7% in Q2
• ADP: Private Employment increased 176,000 in June
• Weekly Initial Unemployment Claims decline to 374,000
• ISM Non-Manufacturing Index declines, indicates slower expansion in June
• Employment Situation Preview