Surge in Florida Bankruptcy Filings

Debt is rising for individuals and businesses across the country, and many states have seen a substantial increase in both personal and business bankruptcy filings. According to a recent report in Newsweek, “personal and business bankruptcy filings surged 11.5 percent over the 12 months ending June 30,” totaling nearly 543,000 bankruptcies compared with about 487,000 the year prior. While bankruptcy filings have risen in nearly all US states, some states have seen a particularly striking surge in both business and individual bankruptcies. One of those states is Florida.

Is your business struggling with debt? Or are you having difficulty repaying your credit card debt, student loan debt, or medical debt? It is important to learn more about bankruptcy in South Florida.

Bankruptcies Rise Significantly in Florida and Several Other States

The highest surge in bankruptcy filings this past fiscal year occurred in the state of Rhode Island with a rise of nearly 28 percent in bankruptcy cases filed. Yet Florida was close behind with an increase in bankruptcy filings by 23.5 percent. As Newsweek points out, the surge in Florida individual and business bankruptcy filings is particularly striking given that Florida is a state with an “otherwise strong economy with favorable business conditions.” Other states coming in closely behind Florida include Minnesota, Vermont, and Texas.

Individual bankruptcy filings rose at higher rates than business bankruptcy filings, yet both showed notable increases. Personal bankruptcies surged by nearly 12 percent, while business bankruptcy rates rose by about 4.5 percent. Currently, these are the highest bankruptcy rates that have been seen since before the COVID-19 pandemic began in 2020. Foreclosure rates have also risen.

Reasons for Increased Bankruptcy Filings

What is causing the surge in bankruptcy filings, including in Florida? In short, individuals and businesses are struggling with debt they cannot repay. For businesses, that debt includes COVID-era loans, and for individuals, it includes “missed mortgage payments, maxed-out credit cards, or mounting buy-now-pay-later balances” in addition to increasing consumer costs, according to Newsweek.

If you are considering bankruptcy in South Florida, what should your next steps be? Whether you are an individual or a business, it is important to discuss bankruptcy eligibility and plans with a lawyer. Many businesses can remain open while reorganizing debts through Chapter 11 bankruptcy or another type of reorganization bankruptcy. For individuals, it may be possible to get a fresh start by filing for Chapter 7 bankruptcy, or to prevent foreclosure on your delinquent mortgage by filing for Chapter 13 bankruptcy.

Contact Our West Palm Beach Bankruptcy Lawyers Today

For anyone who is considering a bankruptcy filing, it is critical to seek legal advice. Our firm represents both individuals and businesses in bankruptcy filings, and we can speak with you today to provide you with more information about your bankruptcy options or to answer any questions you have. Once you are ready to file, we will work with you from the start of your bankruptcy filing to ensure that you or your business meet all necessary requirements set forth under US bankruptcy law. Contact an experienced West Palm Beach bankruptcy lawyer at Kelley Kaplan & Eller today for assistance with your bankruptcy case.

Source:

newsweek.com/map-states-bankruptcies-surging-2107482