The American Bankruptcy Institute reported the total number of U.S. bankruptcies filed during fiscal year 2011 (September 30, 2010-September 30, 2011) dropped 8 percent over fiscal year 2010 (September 30, 2009-September 30, 2010), according to data released yesterday by the Administrative Office of the U.S. Courts. Total filings during fiscal year 2011 were 1,467,221, compared with 1,596,355 cases filed in fiscal year 2010.
 
"The decline in consumer bankruptcies is the residue of a sustained debt deleveraging by U.S. households," said ABI Executive Director Samuel J. Gerdano.

Business filings decreased 18% for the nine-month period ending September 30, 2011, to 36,385 from the 43,016 filings in the same period in 2010. Chapter 7 business liquidations also fell by 18%, as there were 25,672 in the first nine months of 2011 compared with the 30,192 business chapter 7 filings during the same period in 2010. Chapter 11 business reorganizations registered the sharpest decrease, as the 7,417 filings during the first nine months of 2011 represented a 22% drop from the 9,058 total chapter 11 business filings during the same period in 2010. Total business filings decreased 5% from 12,304 in the second quarter 2011 (April 1-June 30) to 11,705 in the third quarter 2011 (July 1-September 30).