Recent Trends in Florida Bankruptcy Cases

By some indications, the economy is doing well, but everyone you know is dragging themselves through life under a dark cloud of financial stress. Nearly a quarter of the American workforce is marginally employed. Yes, they get a paycheck, but it is through gigs, or else through a part-time job where the hours are so unpredictable that it prevents them from finding a more stable source of income. Meanwhile, prices are so high that most people with salaried jobs that pay more than $100,000 per year live paycheck to paycheck. It is unsurprising that, in a climate of pervasive financial stress, more people are filing for bankruptcy each year. Filing for bankruptcy is not a decision to be taken lightly. It discharges many of your debts, freeing up your income to meet financial obligations that you cannot discharge, but it has a negative effect on your credit score, making it difficult for you to borrow substantial amounts of money for several years after the bankruptcy filing. If you are out of options to borrow more money or delay debt repayment, contact a Jupiter chapter 7 bankruptcy lawyer.

Main Reasons That People File for Bankruptcy

In theory, you can file for bankruptcy protection for any reason. If your debts are more than you can repay, you can file for bankruptcy, and the court will ask few questions about how you fell so far behind on your debt payments that the bankruptcy court is your best hope. In fact, many consumers choose to file for bankruptcy because creditors are threatening to sue them and garnish their bank accounts. Garnishment is not even the worst part of business to consumer lawsuits, though. The worst part is the debtors’ examinations, where a lawyer representing the creditor pressures you to confess that you knew you could not afford that Egg McMuffin you bought on the way to work.

In practice, the most common reasons that people file for bankruptcy are job loss and medical debt. Recently divorced people account for a larger share of bankruptcy applicants than they do of the general population, but in most cases, the divorce was only the last domino to fall; the bankruptcy is probably because of job loss, medical debt, or other financial catastrophe that destroyed the marriage.

How Does Florida Compare to Other States in Terms of Bankruptcy Filings?

The humidity and terrifying thunderstorms make the time drag in Florida more than it does elsewhere, so you might assume that our financial stress is worse than everyone else’s. By sheer numbers, Florida has the second highest number of bankruptcy filings, behind only California, but that is because of these states’ large populations. In terms of bankruptcy filings per 100,000 residents, Florida is in the middle, just behind Virginia.

Work With a Debt Lawyer About Filing for Bankruptcy Protection

A South Florida debt lawyer can help you decide whether filing for chapter 7 bankruptcy is your best option for coping with your debts.  Contact Nowack & Olson, PLLC in Jupiter, Florida to discuss your case.

Source:

fool.com/money/research/personal-bankruptcy-statistics/