...By Anthony Buono
Bankruptcy filings by individuals are off sharply this year compared to 2010, reflecting a modest improvement in household finances in Massachusetts.
During the first six months of 2011, Chapter 7 bankruptcy filings dropped to 7,733 filings, down about 20 percent from 9,411 filings during the first six months of 2010.
Business bankruptcies, however, are on pace with 2010 numbers. During the first six months of this year there were 111 Chapter 11 filings, compared to 105 filings during the first six months of last year.
Chapter 7 filings usually involve liquidation and are used by individuals or families and, sometimes, companies that fail to right their courses through Chapter 11 proceedings.
Nationally, the number of personal bankruptcy filings dropped 6 percent during the first quarter of 2011.
While unemployment is still high, creditor pressure has eased to some degree as foreclosures have dropped in recent months.
The declining number of personal bankruptcies may also simply be because during the worst of the recession, many people filed and the people left are more stable financially — or they’re just trying to hold on as the economy gradually improves.
Original article in Boston Business Journal