Bankruptcy showing downward trend nationwide

According the data from the insolvency research organization American Bankruptcy Institute, U.S. consumer bankruptcy filings were down during the first nine months of 2011, insideARM reports. ABI, using data from the National Bankruptcy Research Center, found 1,044,722 nationwide bankruptcy filings during this time period - a 10 percent decrease year-over-year. Furthermore, September bankruptcies decreased 17 percent from 2010 numbers. "The trend of declining filings has been consistent with consumers continuing to rein in their spending, household debt and an overall pull back in consumer credit," ABI executive director Samuel J. Gerdano told the news source. "Total consumer filings for 2011 will be less than 2010." The research center reported additional good news, as September filings represented a 4 percent decrease from the previous month. However, the change is so insignificant that researchers believe it may be attributed to September having one less day on the calender. When a business files for bankruptcy, it's typically protected from debt collection notices via the federal automatic stay law. This prevents debt collectors from attempting to collect during the duration of the bankruptcy, according to the website for attorney Stephen M. Otto.