Experts are not rejoicing the drop in bankruptcies last year just yet. Many people in Houston are still hovering on the financial brink, despite the national drop in Chapter 7 and Chapter13 bankruptcies in 2011, and predictions for this year are bleak. Although there was a drop in bankruptcies for the year overall last year, November and December showed the number of people seeking protection from their creditors increase, suggesting an increase in filings in 2012.

Creditors don't back off just because a national trend suggests less people are seeking protection. Every person's financial situation is different. Just because your neighbor is not filing for bankruptcy doesn't mean you won't have to look at an option to help you get out of debt.

People who fall behind on their debt payments often feel overwhelmed and look toward national trends as a sign that their economic circumstances are fixed to the national average. This is simply not true. Nearly 1.35 million Americans filed for either Chapter 7 or Chapter 13 bankruptcy in 2011. This number is still staggering and experts expect it to rise this year because of the way last year ended.

Filing for Chapter 7 bankruptcy in Texas can help people find the financial relief that they need. It can stop creditor harassment, and set people up for a future that isn't haunted by debt. If the trend at the end of last year is any indication, it is likely that many more Texans will be filing for bankruptcy in 2012.

Source: LA Times, "Personal bankruptcies fall in 2011 to one out of 175 Americans," Tiffany Hsu, Jan. 5, 2012