Fewer people in the United States filed for personal bankruptcy in 2011 than they did in 2010, according to one analysis. An analyst for the National Bankruptcy Research Center reported it was the first time in five years that statistics showed a year-on-year decline. The numbers were also promising for New York residents.

The author of the research, a Columbia Law professor, found that 150,000 fewer individuals claimed personal bankruptcy in 2011 than did in 2010. Total personal bankruptcies last year numbered 1.35 million, down from 2010's 1.5 million filings.

The difference represents a 12 percent drop from one year to the next. Nearly one bankruptcy was filed for every 150 Americans in 2010. In 2011 that number improved to one bankruptcy per 175 Americans.

New York recorded a comparatively low 3,130 bankruptcy petitions for every million persons. Some of the lowest bankruptcy filing rates in the country were recorded in New York City.

While the author acknowledged that the drop was significant, the professor believes it may not be a permanent trend. Bankruptcy filings began to creep up at the tail end of 2011, indicating that the number of filings could remain stagnant or increase during 2012.

Chapter 7 bankruptcies dropped off 17 percent in the last six months of 2011 compared to 2010. Chapter 13 filings plummeted 25 percent during the same period.

On the other hand, about one in 88 people filed for personal bankruptcy in Nevada. Even with a 20 percent drop in bankruptcy filings between 2010 and 2011, Nevada remained the hardest hit state. A few states saw an increase in bankruptcy filings from one year to the next, including Delaware, where the filing of bankruptcy petitions rose 8 percent in 2011.

But it's important to remember that for many Americans, financial troubles are lingering as the economy continues to grow at a snail's pace. Bankruptcy protection is still necessary for many Americans, and it can provide much-needed relief from creditors.

Source: Columbia Law School, "Personal Bankruptcy Filings Down 12 Percent in 2011, Says Law Professor," Jan. 5, 2012