Bankruptcy filings in Miami followed the nationwide trend, declining during 2012. The American Bankruptcy Institute (ABI) reported that bankruptcy petitions declined by 14 percent from the same period in 2011. South Florida bankruptcies, totaling 28,969, were down by 12.7 percent, through November 2012.
The fallout from the housing crash in 2006 and 2007 continues, as some of these new Chapter 7 and Chapter 13 bankruptcy petitions relate to the formerly crumbling real estate market in South Florida. Businesses followed the lead of individuals as Chapter 11 reorganization bankruptcy filings were down 10 percent and overall commercial bankruptcy petitions declined 22 percent in 2012.
The ABI Executive Director noted that “The 2012 filings represent the lowest total since the financial crisis in 2008.” This decline in bankruptcies is a welcome development by everyone in Miami and around the U.S. All observers hope that this decrease in bankruptcy filings is evidence of a growing trend, signifying an improving economy.
As the job market improves and home foreclosures decline, the most complicated bankruptcies, businesses, are following the lead of improving financial conditions for individuals. Considering the economic effects of the recent recession, the 10 percent decrease in business Chapter 11 bankruptcy petitions is significant.
Equally important is the per capita rate of new bankruptcies. In 2012, the per capita rate of new filings declined to 3.83 per 1,000 people versus 4.46 per thousand in 2011. This decrease, almost 15 percent, should be a harbinger of better financial times ahead.
Are you more confident in an improving economy when reading these encouraging statistics? Have you personally noticed an economic improvement in your own life? If not, do you feel confident that a better financial situation is a strong possibility in the near future?
Source: South Florida Business Journal, “Bankruptcy filings continue decline in 2012,” Paul Brinkmann, Jan. 4, 2013
We handle Chapter 7 and Chapter 13 bankruptcy filings occurring throughout Southern Florida. If you would like to learn more about our practice, please visit our Miami Chapter 7 bankruptcy page.