Americans Paying Off Debt According to the Federal Reserve Bank

A recent article on Yahoo that was based on data from the Federal Reserve Bank shows that American consumers are slowly paying off debt (http://finance.yahoo.com/blogs/daniel-gross/big-dig-fed-data-shows-households-attack-mountain-170636810.html). It also shows that bankruptcy filings are down by around 17% so far in 2011. This seems to indicate that people are either attempting to settle their outstanding debt, or a number of people may not have sufficient assets to protect to benefit from filing for bankruptcy protection.
In some cases you may not need to file for bankruptcy protection if you are “judgement proof”. This means that you do not have any assets that creditors can take after they get a judgement against you. If you are on some sort of government assistance with little or no assets, the creditors can not collect from you, and you would probably not need a bankruptcy filing. This is primarily true if you do not see a future without the government benefits due to a disability. If you are simply out of work but have some job prospects or other assets to protect filing a bankruptcy is one option to consider.