HARRISBURG - Bankruptcies in Pennsylvania rose more than 8 percent last year, slightly higher than the previous year's rise of 5.5 percent, leaving the state in the 10th highest slot nationally for a second straight year.

Analysts noted that the driving factors behind the nation's 1.7 million bankruptcies last year were home mortgages, car loans and credit card debt, spending that helped buoy the economy last year even as it lost 439,000 jobs nationally.

Federal figures show 59,423 Pennsylvania residents and businesses last year declared bankruptcy, 98 percent of which were residents, according to American Bankruptcy Institute statistics compiled from federal court filings.

The good news is the constant spending on credit has boosted the economy in the short term, said Sam Gerdano, the executive director of the ABI, a nonprofit group created by Congress to provide information on insolvency.

"The bad news is families are taking on debt," Gerdano said. "As long as they're maintaining their income stream, no harm no foul. ... But people are essentially living paycheck to paycheck."

Bankruptcy numbers likely would be higher without the benefit of low interest rates, he said.

Michelle White, a professor of economics at the University of California-San Diego, noted that the number of bankruptcies rises even in good economies, and said she believes that increasing numbers of bankruptcy filings can be attributed to more people learning how favorable the terms are.

"The question becomes, 'Why don't more people file for bankruptcy?'" White said.

Trends in Pennsylvania closely follow national figures that show that the percentage increase for bankruptcies has outpaced the percentage increase in population by nearly 20 to 1 since 1980. Nationally, total filings have increased fivefold since 1980, according to the ABI. During the same period, the country's population increased 28 percent.

Total consumer credit stood at a record $2 trillion in January, or $6,900 for each person in the United States.

Based on White's calculations, up to one-sixth of American households would receive favorable terms - in other words, more debt would be forgiven than the filer would have to repay - if they did nothing to prepare. If a household prepared for bankruptcy, including doing things such as putting more money into home equity to protect it, then up to one-third of American households would receive favorable terms, she said.

About 1.5 percent of households file for bankruptcy each year, White said.

A debtor who files for bankruptcy protection will have to negotiate higher interest rates on loans or credits cards in the future, meaning that many filers are "at risk of getting into the same trap again," said Matthew Eshelman, a Camp Hill bankruptcy attorney.