An odd economic trend remained in force last month as metro Phoenix bankruptcies continued to moderate despite few signs of improvement in the economy.
Valley bankruptcy filings in October rose slightly from September but fell 22 percent from October 2010 -- the ninth consecutive month of year-over-year declines. Filings are down 13 percent for the year to date, compared with the first 10 months of 2010, according to the U.S. Bankruptcy Court in Phoenix.
The same trends are apparent across Arizona, where statewide filings fell 23 percent in October and the year-to-date numbers are down 13 percent.
But the picture doesn't mean consumers and businesses are getting their finances in better shape.
Ericka Young, a budget coach at Tailor-Made Budgets in Gilbert, feels that for many people a lack of income has become a bigger problem than excessive debts -- which might partly explain the drop in bankruptcy filings.
"If your (spending) behavior is out of line and you don't have the income to support it, bankruptcy won't necessarily help you," she said.
Read the rest of the article at AZCentral
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