Fewer Ohioans are filing for bankruptcy protection.But don’t be fooled into thinking that means people are better off or that the economy is turning around.“It’s not necessarily a good sign,” said Keith Rucinski, a U.S. bankruptcy trustee in Akron. “It’s a sign that people don’t have the funds to pursue a bankruptcy or they don’t have the assets to protect.”Personal bankruptcies dropped 10 percent statewide for the 12-month period ending June 30 compared with the previous 12-month period, according to the latest figures from U.S. Bankruptcy Court.Overall, 63,771 nonbusiness cases — under Chapters 7, 11 and 13 — were filed in Ohio from July 2010 to June 2011, down from 70,891 the previous year.Summit County experienced a similar 10 percent drop.Bankruptcy experts offer several theories why, but none involves an improving economy. Instead, the reasons include people in trouble turning to consumer credit to keep afloat and other people not even having the money available to pay the attorney fees and court costs to file.The top reasons for filing remain the same, experts said: unemployment, medical bills and divorce.Consumer creditThe biggest indicator for bankruptcy filings is consumer credit, said Robert Lawless, a national bankruptcy expert and professor at the University of Illinois College of Law.When consumer credit is easily available — like it has been over the past year — people are willing to borrow and accumulate debt to pay for such items as groceries and utilities. They bank on pulling themselves out of trouble in the future.“As consumer credit becomes less available, the short-term effect is that bankruptcy filings will go up because people will run out of options,” Lawless said.But bankruptcy filings are not an economic indicator, he added.“It’s a legal act with legal consequences,” Lawless said. “There are a lot of people in financial distress who don’t file bankruptcy ... and you can have high bankruptcy rates in economic boom times.”Low on cashSome people have hit rock bottom and are putting off filing because they don’t have the cash available, experts said.A Chapter 7 filing can cost upward of $1,500, while a Chapter 13 filing can be $3,000 or more.“If they could afford to do it, they would,” said Debra Booher, an attorney who handles bankruptcies with Booher & Associates in Cuyahoga Falls. “I don’t think they are waiting by choice. They just can’t afford it.”She advises clients to pay for food and rent before a bankruptcy.“I want you to eat,” she said.Another indicator, though on a smaller scale, involves employment. When employment picks up, there probably will be more bankruptcies because many creditors attempt to garnish wages, pushing some people into filing.That’s why experts advise people not to file for bankruptcy while at rock bottom; they should wait until they have assets to protect.“The right time to file is not when you’re in free fall, but when you are on an upswing,” said Jason Kilborn, resident scholar at the American Bankruptcy Institute in Alexandria, Va., and a professor at the John Marshall Law School in Chicago.Bankruptcy trendsU.S. Bankruptcy Court statistics break down filings by county.The statistics show that 83 out of 88 counties experienced a drop. Only Fairfield, Gallia, Lawrence, Meigs and Vinton counties — all in southern Ohio — experienced an increase.The declines varied greatly in large urban counties: Stark, 15 percent; Lucas, 12 percent; Montgomery, 11 percent; Franklin, 7 percent; Hamilton, 4 percent; and Cuyahoga, 3 percent.In the Akron area, Wayne had the largest decline at 22 percent.Pike County in southern Ohio saw the largest percentage decline statewide at 40 percent.Business bankruptcies fallBusiness bankruptcies also dropped statewide, from 2,033 to 1,518, or by 25 percent, over the same period.Rucinski, the Chapter 13 bankruptcy trustee, said he has seen many small-business owners struggling.They might have built their businesses up over years but now are laying off employees and returning to work to keep the business going, he said.“Mom and Pop are back working long hours,” Rucinski said.That, of course, doesn’t help the workers who are laid off, he added.Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.