For many individuals living in South Florida who are dealing with an overwhelming debt, it can feel as if there are few options. In most cases however, there may be a way out. Depending on the circumstances, filing for Chapter 7 or Chapter 13 bankruptcy may a good way to move past the financial issue.
It appears however that recently fewer in Miami and the surrounding area are choosing that route to deal with their debt. Earlier this month the U.S. Bankruptcy Court in Miami released information regarding the number of bankruptcies filed in the second quarter of 2012. Compared to the same time period last year, the numbers are down quite a bit.
Last year, the total number of bankruptcies in Broward, Palm Beach and Miami-Dade were 23 percent higher than the 7,194 recorded during the months of April, May and June in 2012.
There are several potential reasons for the decline. Some believe the expenses associated with the process, on average $1,500, excludes many. Others indicate that the action of banks lowering credit limits has prevented consumers from accumulating too much debt and makes the minimum payments affordable. Still another reason offered is the reduction in the number of foreclosure actions Miami is seeing. With fewer foreclosures being filed, homeowners don’t feel the need to stop such actions via a bankruptcy filing.
Whatever the reason for the decline, many who work in the area expect the trend to continue. Whether it will, remains to be seen. What do you think will happen?
Source: Sun Sentinel, “South Florida bankruptcy filings fall again,” Paul Owers, July 3, 2012