Personal bankruptcies down in 2012

Personal bankruptcy filings decreased in New London County nearly 20 percent last year compared with the numbers seen in 2011, according to a report released Wednesday.

An analysis by The Warren Group, publisher of The Commercial Record, showed that local improvement in the number of people facing financial difficulties falls closely in line with statewide statistics showing a 15 percent decrease in personal bankruptcies.

"The drop in bankruptcy filings is an encouraging sign," said Timothy M. Warren Jr., chief executive of The Warren Group, in a statement. "It indicates that consumers are more optimistic about their abilility to pay off debt and clean up their financial situations."

New London County saw 567 bankruptcy filings last year, compared with 707 the year before. The vast majority of these filings were for Chapter 7 bankruptcies, the most drastic legal step indicating an inability to repay even part of the debt.

Statewide, bankruptcies dropped from 9,571 two years ago to 8,394 last year. Chapter 7 bankruptcies dominated the totals, with 7,242 filings last year and 8,518 the year before.

New Haven County had the most number of bankruptcies last year, 2,511, followed by Hartford County's 1,930 and Fairfield County's 1,845.

"If the housing market — and overall economy — continues to improve, we are sure to see even better results in 2013," Warren said.

New London County Bankruptcy filings, 2011-2012
 Chapter 11Chapter 13Chapter 7


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