Sometimes, debt can get out of hand. Many people don't know where to turn. They try working out a budget, but the creditors just keep calling. Chapter 7 bankruptcy can help a person stop creditor harassment and has been helping many people start over in midst of the recent financial crisis.

New numbers are suggesting that 2011 saw a drop in the number of personal bankruptcy filings, but experts warn that an increase in the last two months of the year could mean a new wave of bankruptcy filings is coming in the new year.

Overall, the number of people in the United States that filed for bankruptcy is one in 175 people last year. This number suggests that Americans are still struggling to come to grips with their finances. Sometime people are able to hold off filing for bankruptcy if other financial means allow for them to continue making payments, such as an increase in credit.

Because these measures might only be temporary fixes to a person's financial problems, they may have to file for bankruptcy in the future, and this could be one explanation for the drop in the number of bankruptcies in 2011.

Each person's personal financial situation is different and it is important to remember that just because a national average suggests that less people are filing for bankruptcy relief, doesn't mean that you should avoid it. Talking with a bankruptcy attorney can help you understand the process and whether it is the best financial decision for your situation.

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