Ohio bankruptcies down, but economy is not improving

AKRON, Ohio (AP) — Fewer Ohioans are seeking to protect themselves from creditors by filing bankruptcy, but experts don’t think that’s a reason to start celebrating a return to prosperity.

“It’s not necessarily a good sign,” Akron-based U.S. bankruptcy trustee Keith Rucinski told the Akron Beacon Journal. “It’s a sign that people don’t have the funds to pursue a bankruptcy or they don’t have the assets to protect.”

Personal bankruptcies fell 10 percent across Ohio in the 12-month period ending June 30, 2011 compared with the previous 12-month period, according to the latest numbers from U.S. Bankruptcy Court.

From July 2010 to June 2011, 63,771 nonbusiness cases were filed, down from 70,891 the previous year. Experts said the top reasons for filing bankruptcy remain the same — unemployment, medical bills and divorce.

Fewer filings do not mean the economy is improving, bankruptcy experts told the newspaper. Rather, people are relying more heavily on consumer credit to keep themselves afloat, and others don’t have the money to pay attorney and court fees associated with filing bankruptcy.