A reduction in the number of bankruptcies filed in the country is being downplayed by the research center that released the data.
According to the National Bankruptcy Research Center, filings declined 1 percent in April when compared to March. However, the organization noted March is typically the month with the highest number of bankruptcies, so a drop in the amount in April is not necessarily significant.
In fact, filings were up on a year-over-year basis. Compared to April 2009, bankruptcies increased 15 percent, while 2010 has posted a 17 percent jump compared to last year.
The NBRC noted that Chapter 7 bankruptcy continues to be the most common, while Chapter 13 amounted to 25 percent of April's total.
"The continuing decline in the share of Chapter 13 filings contrasts with the strong push by Congress in its 2005 bankruptcy legislation to encourage bankrupts to choose Chapter 13 rather than Chapter 7," the firm said.
Through the new rules passed by the government, consumers have to submit to a means test. If they still have $100 left over every month after paying essential bills, they must file for Chapter 13 protection.
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