According to data from 2012 and the first half of 2013, consumer bankruptcy filings are down, and experts expect the trend to continue.<\/p>\n
In 2013, the government released data showing that consumer bankruptcies were down 13 percent in 2012. For the first half of 2013, bankruptcies were also down 13 percent from the same period in 2012. Sam Gerdano, executive director of the American Bankruptcy Institute, said that due to current low interest rates, households were \u201cdeleveraging.\u201d<\/p>\n
Deleveraging refers to reducing debt such as high-interest-rate credit cards, mortgages and vehicle loans, which can be accomplished by refinancing at a lower interest rate, taking advantage of government programs and avoiding taking on additional debt. Deleveraging is a step that can result in a better financial position for the individual consumer, making it less likely that a person will need to file for bankruptcy. Experts expect the deleveraging trend to continue.<\/p>\n