Simply put, rising consumer confidence is leading to households opening their wallets and increasing their credit card and auto loan debt burdens.  This, combined with the expected housing foreclosure pick up, has caused forecasters to predict an 8% increase in bankruptcy filings in 2013.  The following is from usblawg.com:

“Judge Julia Gibbons, chair of the budget committee of the Judicial Conference of the United States, which oversees the federal court system, told a Congressional committee earlier this year that court administrators expect bankruptcy filing to increase by 8 percent or more in 2013.

The court administrators’ projections assume consumer debt levels will start to climb again, resulting in more bankruptcies. Consumer spending increased by 3.3 percent in 2011 after a decline in 2010, according to data released by the U.S. Bureau of Labor Statistics in September. Stronger economic growth forecast for 2013 by Moody’s Analytics, an independent provider of economic forecasting, could make people feel more comfortable about opening their wallets and about taking on new debt.

If housing foreclosures pick up next year with the recovering housing market, then consumer bankruptcies will increase at an even faster pace in 2013, Gibbons predicted.”