All bankruptcy attorneys are not created equal. Schedule A Free Case Evaluation
Nowack & Olson, PLLC
Let’s do this together.
Speak with one of our professionals.
888-813-4737

Personal bankruptcies decrease in Florida for 2 straight years

Personal bankruptcies have fallen throughout parts of Florida for the second year straight. Financial challenges continue to be a difficult issue nationwide since the housing market collapsed in 2007. In Florida, foreclosure activity is still the highest in the country, so many experts in bankruptcy law aren't sure why there is a decrease in the amount of Florida bankruptcies.

Some financial experts speculate that the downward trend for personal bankruptcy started with a year-long moratorium on foreclosures in 2011, after the government launched an investigation on some lenders' questionable foreclosure practices. This had a noticeable effect on the amount of bankruptcies filed in 2011, but when foreclosure activity resumed early last year, the bankruptcy rate continued declining. In the Orlando area alone, the number of bankruptcies filed has decreased 9.3 percent compared to last year's numbers.

There are a few other reasons that might explain this downward trend for personal bankruptcies. The unemployment rate is also decreasing. Research companies have shown that Florida includes one of the top areas in the nation this year for paying down credit card debt. This could be a sign that Americans are starting to recover from the struggling economy.

However, there are still a few pitfalls to be aware of. With the Mortgage Forgiveness Debt Relief Act of 2007 expiring, personal bankruptcies may again increase. The act exempted people from paying taxes on forgiven debt from loan and mortgage issues, including foreclosures. With the expiration of this act, many people may suddenly find themselves owing a great deal of money in taxes.

Source: Orlando Sentinel, "Orlando bankruptcies fall for 2nd-straight year, heading for lowest mark since 2008," Richard Burnett, Dec. 30, 2012

No Comments

Leave a comment
Comment Information

We take your situation as seriously as you do.

Start with a Free Case Evaluation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

What Our Clients Say:

Back
  • "Maria please let Attorney Olson know how pleased I am with the results of my home loan modification with Bank of America. I am so grateful for all of their hard work, especially since my house was a gift from my parents, I prayed not to lose it to foreclosure....."

    Cassandra M.
  • "We received last Friday our bankruptcy discharged letter for the trustee.
    We want to thank you very much for your services in our bankruptcy file.
    We are very pleased and happy with your service, you are so professional, courteous, organized and fast.

    We will recommend you every time we can.
    God Bless You!"

    Yazmin & Ricardo D.
  • "MY EXPERIENCE WITH MITCH AND CHRIS AND U WERE JUST A GREAT EXPERIENCE I WANTED TO GIVE UP PRIOR TO U GUYS.. DON'T WANT TO FORGET ABOUT LEO, HE'S ALSO GREAT PERSON..COMMUNICATE REALLY GREAT WITH ME,,ACTUALLY ALL OF U ....I CAN EMAIL OR CALL .U ALL ALWAYS REPLY TO ME....."

    Tonya C.
  • "I was very pleased with work of Nowack & Olson, and way you guide me through all process of bankruptcy and loan modification. I received good care and was informed on every step of it. Thank You very much. You save my life!"

    Kasia D.
  • "Just wanted to thank you again for helping my wife and family through a tough time. We are finally starting to get back on our feet and building back our nest egg. We have stabilized our income again, and see the light at the end of the tunnel. I remember one of your tag lines was helping good people through bad times... That always rang true with us....."

    Peter R.
  • "After a rather distasteful experience with a Foreclosure Attorney I was apprehensive to say the least to hire an Attorney to handle our Bankruptcy. After some internet searches and research I found Christian Olsen, and after our initial consultation my wife and I retained his services....."

    Bobby and Tanya
  • "I am a teacher who reaped the rewards of a profitable side business until shortly after the recession. I struggled to keep my business afloat until I finally threw in the towel. Between personal and business debt, I was suffocating in bills....."

    Richard C.
Read More Testimonials

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.