Bankruptcy Filings Down 21% In February
According to the American Bankruptcy Institute http://news.abi.org/press-releases/february-bankruptcy-filings-decrease-21-percent-from-previous-year-commercial-filings, bankruptcy filings have dropped 21% nationwide in February 2013. The article said that February filings were up 5% from January 2013. This seems to reflect what I am seeing in banks that have cut credit limits and increased their underwriting standards by not providing as much credit to risky borrowers.
It seems that banks have improved their ability to predict risky borrowers and that is leading to smaller amounts owed by people filing for bankruptcies. Most clients I am seeing owe less than they did three or four years ago. It will be interesting to see if the current trend continues for the rest of 2013, or if bankruptcy filing numbers will increase.