Regional and nationwide bankruptcy filings decreased in 2012 for the second consecutive year.
New cases in the 33-county Middle District of Pennsylvania dropped by 14 percent from 2011, federal court data show. Filings in the court's Wilkes-Barre office, which includes 10 regional counties, decreased by 11 percent.
Bankruptcy filings nationally dropped by 14 percent in 2012 from the preceding year, according to the American Bankruptcy Institute, a Washington, D.C.-area trade group.
"Part of it is, the economy is getting a little better," said Tullio DeLuca, a Scranton lawyer who handles bankruptcies. "People have straightened out their financials, to a certain degree."
The 7,596 bankruptcy cases filed in the district represented the lowest annual total since 2006, when 5,557 cases were entered. Bankruptcies escalated locally and nationally from 2007 to 2010 as a result of the severe recession before a decrease began in 2011.
Part of the decline probably reflects a retreat after years of increasing filings because many insolvent people already had sought court protection, said John Martin, a bankruptcy lawyer and trustee in Honesdale.
"There's just less people to file," he said.
Personal bankruptcies often involve a sudden illness or loss of job, seniors on fixed incomes and homeowners falling behind on mortgage payments, said Marjorie DeSanto Barlow, a Scranton lawyer who does bankruptcy work.
Unemployment and underemployment are common causes, she said. The Scranton/Wilkes-Barre metro area, which had a 9.4 percent unemployment rate in November, has had the state's highest rate since April 2010.
"We have people who lost higher-paying jobs and are working minimum-wage jobs," Mrs. Barlow said.
Bankruptcy numbers may be decreasing because consumers have reined in spending and are more careful about their financial situations, Mr. DeLuca said.
"People are watching how they are using their credit cards," he said.
Samuel Gerdano, executive director of the American Bankruptcy Institute, which does education and research about insolvency, predicted case volumes will continue to decrease this year. He cited low interest rates, reduced consumer spending and a continuing reduction in household debt.
Mr. Martin said the dip in bankruptcies may not signify an improving economy, though, because unemployment remains high and wages are stagnant.
"I think the key is when you start to see real wages increase," he said.
Bankruptcy filings decreased in every county in the region in 2012, compared the prior year, court records show.
Filings dropped by 18 percent in Wayne and Susquehanna counties, 13 percent in Lackawanna and Pike counties, 10 percent in Luzerne County, 8 percent in Monroe County and 2 percent in Wyoming County.
Contact the writer: jhaggerty@timesshamrock.com