When the U.S. Bankruptcy Court in Miami revealed that October bankruptcies were down 10 percent from September, many were not surprised. As the holiday season approaches, many families in the area that are considering the move hold off for various reasons. Many simply have difficulty getting the money together to cover court fees. Some find jobs and are offered end of the year settlements from creditors, and one family was even offered a 40% reduction on the principal owned on his home which allowed them to keep their home and avoid bankruptcy.
The October drop is not signaling a big downward turn in bankruptcy filings, but there has been progress and personal bankruptcies in South Florida have dropped over 3 percent when compared to figures from, a year ago.
Although the holidays bring some happy endings, many families find that once the new year begins, they do need to consider bankruptcy once again to address their financial hardship. Accordingly, some seek out a bankruptcy attorney for advice, often after receiving their income tax refunds. Whether a family chooses to work to try to find a way around bankruptcy or surrender to the protection from creditor harassment, possible garnishments and property repossessions is a personal decision that takes a good deal of thought and consideration.
Bankruptcy is not always the answer, but bankruptcy lawyers can help their clients see the range of options so they can make an informed decision on what choice is best for them given their own personal circumstances.
Source: Sun Sentinel, “Bankruptcies fall last month after jumping in October,” Donna Gehrke-White, Dec. 4, 2012