Bankruptcy filings dip in 2004

Once the data is fully analyzed, the Bankruptcy filing rate, which declined last year for the first time since 2000, will have likely remained flat or continued to decline during the last quarter of 2004, only to rise again this quarter. This conclusion is based on trends in consumer debt levels and credit card default rates found in data analyzed by the American Bankruptcy Institute. The Federal Reserve noted that 3 variables, the financial obligations ratio, the credit card default rate and the credit card charge-off rate, appeared to correlate with and lead the consumer Bankruptcy filing rate. All 3 suggest that the downward trend is likely to continue.