The number of citizens in the Middle District of Florida filing for bankruptcy rose by nearly 45% this past year. This drastic increase in filings is largely due to the number of foreclosures and unemployment.
Almost twice as many people are filing for Chapter 7 bankruptcy, which liquidates assets allowing filers to pay off some debts and absolving them of others. This figure is significant due to the number of federal bankruptcy laws enacted in 2005 with the purpose of encouraging Chapter 13 filings. Chapter 13 filings require filers to reorganize their debt and enter into repayment plans in exchange for keeping certain assets.
The idea behind the 2005 bankruptcy laws was to make it harder for people to completely dispose of their debt, particularly for Chapter 7 filings. In order to segregate those who had the means to repay their debt and those who did not, a “means” test was implemented. If the test establishes that a person is financially capable of satisfying at least part of the debt after it is restructured, they will not qualify for a Chapter 7 filing.
All together, personal bankruptcy filings in central Florida rose to 61,009 as of December 2009, according to United States Bankruptcy Court for the Middle District of Florida statistics. This figure is up 45% from 2008. This is also the highest number reported since 2005 when there was a dramatic increase in filings due to the new legislation which was about to take effect.
Chapter 7 filings were up more than 58% as of December 2009, compared with December of 2008, according to the Middle District. December is the most recent month with data available. Chapter 13 filings rose by 17% and accounted for 25% of the 2009 filings as of December. Judging by these numbers, it does not appear that the 2005 legislation is very effective or is achieving its purpose.
The massive amounts of foreclosures and the unemployment rate have caused people to file for bankruptcy who wouldn’t have otherwise. Nationwide statistics have shown more highly educated and affluent citizens have turned to bankruptcy. Some experts believe that bankruptcies peaked at some point in 2009, but it does not appear that the number of bankruptcy filings is going down whatsoever.
If you are considering bankruptcy contact the Tampa bankruptcy attorneys at Yesner & Boss to find out what options may be available for you.
Wednesday, February 17, 2010
Wednesday, January 6, 2010
When Does My Bankruptcy End?
I am often asked, “how long will this take – when will my bankruptcy end?” The answer depends on the congestion of the court’s docket and what type of bankruptcy is filed. Sparked by the great economic disaster of 2008 bankruptcy filing in the Middle District of Florida is up almost 50% from 2008, topping out at almost 58,000 according to the Tampa Bay Business Journal. The increase in filings in the Middle District of Florida is the second largest in the nation behind the Central District of California.
Despite the increased number of filings, a common chapter seven bankruptcy case in the Middle District of Florida takes anywhere from three to six months from the filing date until the date of discharge. Discharge being the conclusion of a bankruptcy case i.e. the Debtor is alleviated of the debt obligations. Considering the overwhelming number of filings and the second busiest bankruptcy court in the country, a Debtor can make their way through a chapter seven in a reasonable amount of time.
However, if a debtor files a chapter thirteen bankruptcy, the time frame is much different. In a chapter thirteen bankruptcy, the Debtor makes a monthly repayment to the Trustee over the life of a thirty-six or sixty month repayment plan. Once the Debtor makes the last payment in their chapter thirteen plan, the Debtor is then discharged. Depending on which plan, a chapter thirteen bankruptcy takes at least three years before discharge and in many cases five years before discharge.
If you are considering bankruptcy contact the Tampa bankruptcy attorneys at Yesner & Boss to find out what options may be available for you.
Despite the increased number of filings, a common chapter seven bankruptcy case in the Middle District of Florida takes anywhere from three to six months from the filing date until the date of discharge. Discharge being the conclusion of a bankruptcy case i.e. the Debtor is alleviated of the debt obligations. Considering the overwhelming number of filings and the second busiest bankruptcy court in the country, a Debtor can make their way through a chapter seven in a reasonable amount of time.
However, if a debtor files a chapter thirteen bankruptcy, the time frame is much different. In a chapter thirteen bankruptcy, the Debtor makes a monthly repayment to the Trustee over the life of a thirty-six or sixty month repayment plan. Once the Debtor makes the last payment in their chapter thirteen plan, the Debtor is then discharged. Depending on which plan, a chapter thirteen bankruptcy takes at least three years before discharge and in many cases five years before discharge.
If you are considering bankruptcy contact the Tampa bankruptcy attorneys at Yesner & Boss to find out what options may be available for you.
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