Residents of Southern Florida are likely all too aware of the financial issues those around them have been dealing with. For a time, there seemed to be no end to the number of bankruptcy filings that were occurring in South Florida. Over the course of the past few months however the number of Chapter 7 and Chapter 13 filings has been decreasing. Compared to July 2011, this past July the total number of filings was down 18 percent.
The results varied a bit from county-to-county. Both Miami-Dade and Broward decreased while Palm Beach County rose by 40 filings in July as compared to the previous month. Overall however in South Florida the total number dropped by 3.5 percent. This drop in numbers continues a streak that started in April of this year.
Those who work in the field believe there are a couple of reasons for this, both tied to the ownership of a house. First, many homeowners who in the past may have filed are instead trying to move on from their house by selling it for less that it is worth, via a short sale. Other homeowners are working to modify their loans.
Regular readers of this blog are likely aware that bankruptcy and foreclosures are intimately tied together. This is because many homeowners end up filing for bankruptcy in an effort to hold on to their home as doing so results in an automatic stay that put s the foreclosure on hold. With other options for dealing with one’s home available, it is not surprising that fewer bankruptcy filings are being made.
Source: Sun Sentinel, “Bankruptcy filings fall in South Florida,” Marcia Heroux Pounds, Aug. 1, 2012
- Bankruptcy cases can be complex. Our firm provides counsel in these types of matters. If you would like to learn more about our practice, please visit our Miami Chapter 13 bankruptcy page.