Despite a recent drop in bankruptcy filings, several consumer advocacy groups warn that this is not necessarily a sign of a renewed economy. Instead, these groups believe that Americans are less trustworthy of the bankruptcy process itself.

According to one institute, there was a drop of 17% in consumer bankruptcies in September. This translates to 108,517 overall filed across the country, a figure that would seem high until compared to recent years. Last year saw the highest number of bankruptcies filed at 1.5 million, a figure that is unlikely to be topped after the legislation passed in 2005 overhauling bankruptcy laws.

By making it harder for individuals to file for bankruptcy, the government intended to weed out those individuals/groups that were using bankruptcy as a crutch that they did not actually need. The intent of legislators was to lead more people to file for Chapter 13 bankruptcy rather than Chapter 7 bankruptcy, a move that has been met with less success than expected.

If you are struggling to pay back debt that you owe, bankruptcy may be on your mind. However, to find out what type of bankruptcy is right for you, you'll first want to speak with a Houston bankruptcy lawyer by contacting the Malaise Law Firm.