Bankruptcies on the decline but may still increase
People in Florida may be interested to learn that bankruptcy filings in September were down, and this marked a 10-year low for filings over a period of 12 months. However, the economic news is not all positive. There was an increase in Chapter 12 filings, which is a type of bankruptcy for family farms and fisheries, and some experts predict that if interest rates increase, bankruptcy filings might as well. Furthermore, there was only a small decline compared to 2016, and this suggests that the overall drop in bankruptcies might be slowing down.
In the year ending in September, there were 790,830 bankruptcy filings compared to the previous annual figure of 805,580. According to one expert, the figures still indicate that many people throughout the country are struggling economically. Another said that the rise in Chapter 12 filings was a reason for concern.
In a Chapter 7 bankruptcy, a person may keep some assets that are considered exempt, but any other assets are sold to pay creditors. A Chapter 13 bankruptcy allows a person to create a plan to repay creditors over three to five years. Chapter 11 is a type of bankruptcy that allows debts to be restructured and is largely used by businesses and not individuals.
A Chapter 13 bankruptcy filing may allow a person to stop foreclosure and keep a home. People who are struggling with debt might want to talk to a lawyer about their options and whether bankruptcy may be the right choice for them. a lawyer might also be able to dispel myths about bankruptcy such as the idea that credit cannot be rebuilt after a bankruptcy filing. Filing for bankruptcy stops creditor harassment, debt-related lawsuits and any other actions against the debtor to help give a person a fresh financial start.