Bankruptcies Down in Norfolk County, State in 2011

Both Norfolk County and Massachusetts saw double-digit percentage drops in bankruptcy filings in 2011, according to numbers released last week.

The data, compiled be financial information firm The Warren Group, showed Chapter 7, or personal, bankruptcies fell 16 percent from 2010 to 2011 in both the county and the state. The county had filings fall from 1,348 to 1,134 during that time period, while state filings fell from 17,496 to 14,716.

Chapter 13 bankruptcies, which are used to arrange three- or five-year debt-repayment plans, also fell substantially. The county saw a 14 percent decline (from 536 to 463), while the state had a 11 percent decrease (5,392 to 4,813).

Chapter 11 filings, which is used by business bankruptcies and refilings, dropped by 22 percent in Norfolk County and nine percent in Massachusetts. The county's filings dropped from 32 to 25 from 2010 to 2011, while state filings fell from 237 to 215.

Warren Group CEO Timothy Warren said in a statement that the news was a positive development.

"I'm encouraged by the drop in bankruptcy filings, it indicates that consumers are more optimistic about their ability to pay off debt and clean up their financial situations," he said. "The decrease in bankruptcy filings is running parallel with lower unemployment rates in Massachusetts."

Warren, though, said there is still uncertainty.

"Unfortunately, I haven't seen a big enough improvement in the unemployment picture to confidently say the economy has completely turned the corner," he said.