According to a new national report, fewer people filed for personal bankruptcy in Reno and across the U.S. in 2011 in comparison to the number of filings made in 2010. However, that low may only be temporary, as economists expect Chapter 7 and Chapter 13 bankruptcies to increase in the year to come.

Last year, approximately 1.3 million people entered Chapter 7 or Chapter 13 bankruptcy, according to the report from the National Bankruptcy Research Center. This number amounts to about one filing per every 175 Americans, which is a decline from 2010. During that year, about 1 out of every 150 Americans filed for personal bankruptcy, amounting to a total of 1.5 million people.

However, Nevada has the highest bankruptcy rate of any state in the country despite a 20 percent decline in bankruptcy filings from 2010. There was about one filing per every 88 Nevada residents in 2011, which was about twice the national average.

Specifically, Chapter 7 liquidating bankruptcy filings fell by about 17 percent last year. In contrast, Chapter 13 rehabilitation bankruptcy filings decreased by about 25 percent.

Unfortunately, many economists do not expect the downward trend to continue in the coming months and years. Personal bankruptcy filings increased during the months of November and December, and this rise is expected to continue in the first months of 2012 and beyond.

The decline in 2011 was the first of its kind since 2006, when personal bankruptcy filings dell because of a federal law passed in 2005 that significantly changed bankruptcy laws and made it more difficult to qualify for bankruptcy protection.

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