With the housing bubble going "pop" in 2008 and the subsequent impact on the U.S. economy, personal bankruptcy rates were bound to see an upward trend. The past few years have been difficult for so many people, and Washington residents have heard plenty of unfortunate stories of friends or family members filing for bankruptcy.

However, a Columbia law professor analyzed personal bankruptcy filings in 2011 and discovered some positive news. About 1.35 million Americans filed for bankruptcy last year, a 12% decrease from 2010 and the first year-over-year decline since 2006. About one in every 175 Americans found themselves filing for bankruptcy in 2011 and, in general, Chapter 7 filings dropped more than Chapter 13 filings.

Though his analysis is a bright spot during these tough financial times, the professor warned that the 2011 personal bankruptcy numbers might not tell the whole story.

"Based on an increase in filings in November and December, and seasonal adjustment, there is some reason to think filings in 2012 might start edging up again," he said.

One regional observation the Columbia law professor had shows that western states are struggling more than other regions in the country. Nevada, for example, maintained its status as the state with the highest bankruptcy rate at about one filing per 88 residents. Clark County, where Las Vegas is located, had one of the highest filings rates for urban counties in the U.S. And next to Georgia and Tennessee, Utah and California rounded out the nation's top-5 for highest bankruptcy filing rates.

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