Over the last several years, it has been necessary for many people to file for chapter 7 or chapter 13 bankruptcy. Filing for bankruptcy can be the best option for people during tough economic times to protect their future.

In what could be a cautious sign of an improving economy, new data shows that personal bankruptcies fell in 2011, the first time that's happened in four years. Total bankruptcies in the U.S. reportedly fell by 11.9 percent, the first drop-off since 2006.

The managing director of a securities firm says that the decline in bankruptcies does indicate a "marginally" better economic climate. Consumers have been slowly paying down debt after pulling back on spending during the recession. Job losses have also slowed down, perhaps allowing people to catch their breath.

According to CNN, credit card debt also dropped by about 11 percent last year. The average credit card balance fell from $7,404 in 2010 to $6,576 last year. Americans' mortgage debt remained about steady, while auto loan debt actually increased by about 2 percent.

Overall, there are encouraging signs, but signals are mixed. Economic recovery is slow, and consumers are not necessarily ready to go out on a spending binge. CNN's numbers indicate that when all debts are tallied, the average consumer held a total debt load of $210,236 at the end of last year, a drop of about 1 percent.

It will be interesting to see what next year's numbers look like as economists cautiously hope for economic recovery.

Source: Collections and Credit Risk, "Bankruptcy rates shows first decline since 2006," Jan. 17, 2012