Arizona Bankruptcy filings increase yet again.

Bankruptcy filings across the valley and Arizona spiked against last month as more consumers feel the economic heat.

Valley filings for Chapter 7 bankruptcy increased 93.2 percent last month compared with July 2008. Filings increased from 997 to 1,926 for the month, according to the U.S. Bankruptcy Court of Arizona. Across Arizona, Chapter 7 filings increased 86 percent, from1,415 to 2,632.

The economic indicators including unemployment rates indicate filings are expected to remain high. Also, many homeowners in Arizona are miles upside down in their house. People are choosing to walk away from their properties instead of paying on a mortgage where the payoff is over twice as much as the value of the property. It makes sense to draw a line in the sand and file bankruptcy. This allows people to rebuild the credit sooner instead of chipping away at astronomical debt for years.