The state of bankruptcy filings often comes down to the state of the economy. When people begin losing jobs they often rely on credit to help them pay for essentials, when these bills become due bankruptcy is often a sensible option for people that can no longer find their way out of debt from personal loans and credit cards.
Recent statistics on the state of bankruptcies in America show good news for the Florida economy. Negative filings in Florida has fallen over 4% when comparing numbers between January 2019 and January 2020.
Cumulative Filings In Florida
There were 3566 bankruptcy cases that took place in January of 2020 in the state of Florida. This is down from 3771 filings in the previous year. Comparing Florida to other states also shows that there is a lesser instance of people regularly filing for bankruptcy. Filing rates are much higher in states like California which had over 5071 filings for the month of January. This ultimately comes down to population however as California’s filing rate per capita is 1.65 and Florida’s is 2.31.
Most People In Florida File For Chapter 7
Chapter 7 is one of the simplest formats for consumer bankruptcy. Chapter 7 bankruptcy can help consumers to quickly clear out their debt in 3 to 4 months whereas chapters their team bankruptcy typically takes 3 to 5 years for a debt repayment plan. 62% of filings in Florida are chapter 7 bankruptcy based on January statistics.
Improvements From 2019
The state sought an overwhelming 17% increase in the number of filings from 2018 to 2019. The rates of bankruptcy are beginning to settle however showcasing a better economic forecast for Florida.
If you are considering bankruptcy, you may want to work with a bankruptcy attorney. Our team can help you tackle your debt and decide on the right type of bankruptcy for your needs.
This post was written by Trey Wright, one of the best Bankruptcy Lawyers in Tallahassee Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.