Bankruptcies up overall, while consumers may consider debt consolidation to avoid needing to file

By Angela Hawke on May 7th, 2010

A recent report from the National Bankruptcy Research Center shows that filings declined a bit during April.

According to the center's report, bankruptcies dropped 1 percent from March to April on a seasonally adjusted basis. The NBRC said filings amounted to 145,000 in April and 150,000 the month before.

However, bankruptcies were up 15 percent when compared to April of last year. Thus far, 2010 has posted a 17 percent rise in filings when compared to the same time last year. Through April, one in every 225 households faced a bankruptcy.

According to FICO, filing for bankruptcy has the most critical impact on a consumers credit score. For example, someone with a score of 680 can expect it to drop between 130 and 150 points.

Because of this, consumers may try and seek alternatives before they get to the point where they consider filing. One of those may be debt consolidation, which can aid troubled borrowers by lowering the amount of interest they pay on credit cards.

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