The number of bankruptcy filings in the Metro Phoenix area continued to decline in March, The Arizona Republic reports. The number of bankruptcies filed last month dropped 26 percent from the number of filings in March of last year.
In all of Arizona, bankruptcy filings were down a whopping 28 percent from March 2011. On a year-over-year basis, last month’s decline in filings marks the fourteenth consecutive month in which Arizona bankruptcy filings have been in decline.
While filings have declined on a year-over-year basis, March’s 2,074 filings were the highest so far this year for the Phoenix area. This is because March tends to be a popular month for filing, as many people use their income-tax refunds to hire bankruptcy attorneys.
Bankruptcy filings were down on the national scale as well. The 122,118 bankruptcies filed across America in March represent a 17 percent fall from the number of March 2011 filings.
The decline can largely be attributed to the easing of consumer debt pressures on a national scale. “With the economic recovery weighed down by the distressed housing market and high unemployment, consumers and business are continuing to cut their debt burdens,” American Bankruptcy Institute executive director Samuel Gerdano said.
According to a new report by the American Bankers Association, all types of consumer-debt problems were in decline in the last quarter of 2011. The overall delinquency rate for all 11 categories of past-due loans tracked by the ABA dropped to its lowest level since 2008, the report states.
Hopefully, the decline in both the Phoenix bankruptcy filings and the overall delinquency rate will continue for many months to come.
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