More than 1.35 million people filed for Chapter 7 or Chapter 13 bankruptcy in the United States last year. This number was lower than 2010 but some are cautioning that the bankruptcy rate could rise again this year.

Pointing to an increase in the months of November and December last year, some experts think that the personal bankruptcy rate might increase again this year. The national average was one in every 175 people filing for bankruptcy last year. This number is still much too high and if the end of last year's trend continues, that number is likely to increase.

This decrease in bankruptcy may have been caused by some Americans avoiding filing because they had some short term solution to their debt problems. This could be in the form of more credit being made available to them, which might send them further into debt and not help their financial situations.

Once that short term solution runs out, it is possible that more people will file for personal bankruptcy. This national trend might not necessarily reflect everyone's personal financial situations. Just because a national average says that less people filed for bankruptcy last year, doesn't necessarily mean that you can avoid it.

Bankruptcy can be used to stop creditor harassment and eliminate or reduce debts. Although it may be difficult decision to make, it might help you gain a fresh start for your financial future. Speaking with an experienced bankruptcy attorney can help you determine whether filing for bankruptcy relief is the right decision for your situation.

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