Reuters logo
Fitch: U.S. Personal Bankruptcies Set for Fifth Straight Annual Decline
February 27, 2015 / 3:46 PM / in 3 years

Fitch: U.S. Personal Bankruptcies Set for Fifth Straight Annual Decline

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Personal Bankruptcy Filings Primed for Fifth Straight Annual Decline here NEW YORK, February 27 (Fitch) Annual U.S. personal bankruptcy filings are set for a fifth straight drop, though the rate of decline figures to level off over time as lending guidelines become more lax, according to Fitch Ratings in a new report. Fitch projects total bankruptcy filings to fall by another 8%-10% in 2015 reflective of a still-positive macro environment. This development comes as aggregate personal bankruptcy filings for 2014 fell over 12% lower year over year, another double digit annual decrease in line with Fitch's full year forecast of a 12%-13% decline. That said, 'the continued loosening of lenders' underwriting guidelines and the increase to consumers' access to credit should begin to slow the pace of the double-digit declines observed over the past four years,' said Managing Director Michael Dean. U.S. consumer credit rose for the fifth straight year in 2014, topping over $3 trillion on a seasonally adjusted basis. While revolving credit (predominantly credit card usage) has remained relatively flat, there was a more pronounced increase (over 8% last year) in the usage of non-revolving credit. 'Both auto and student loan borrowing are continuing to surge and has grown at a considerable pace to above $2.4 trillion,' said Dean. Taking this trend into account, Fitch believes 2015 will be another strong year with lower personal bankruptcy filings. 'Reduced interest payments and full employment will take away the incentive for consumers to seek bankruptcy protection,' said Dean. 'Lower gas prices will also help household finances.' 'Personal Bankruptcy Filings Primed for Fifth Straight Annual Decline' is available at 'www.fitchratings.com' or by clicking on the above link. Contact: Herman Poon Director +1-212-908-0847 Fitch Ratings 33 Whitehall Street, New York, NY 10004 Michael Dean Managing Director +1-212-908-0556 Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below