Central Florida, which includes Orlando, reported a slight increase in business bankruptcies, with the bulk coming from Chapter 7 filings.
Along with an increase in Chapter 7 filings, the U.S. Bankruptcy Court for the Middle District of Florida also reported a jump in the number of personal bankruptcy filings too.
When looking at the numbers, in total 66,881 bankruptcy cases were filed for fiscal year 2010. Of those, 2,995 were from businesses, with 72 percent of those reported as a Chapter 7 filing. In fiscal year 2009, the number of filings was just six less at 2,989
According to the U.S. Bankruptcy Court for the Middle District of Florida, personal bankruptcies saw a 15.4 percent increase with 63,886 bankruptcy filings just in central Florida alone. Last year 54,967 filings were reported.
However, central Florida is not alone in its filing increases, as the entire nation saw an increase. According to statistics from the administrative office of the U.S. Courts, 1.6 million bankruptcies were filed in fiscal year 2010, compared to 1.4 million in fiscal year 2009. The fiscal year ended on Sept. 30.
Chapter 7 is known as a liquidation bankruptcy because a person's or businesses' assets are used to pay off the debt. However, this is far from the only option as there are also Chapter 11 and Chapter 13 filings. What works for one person or business might not work for another person or business. A bankruptcy attorney can help sort through the options to find a solution that fits the best.
Source: Orlando Business Journal, "C. Fla. Bankruptcy filings grow," Margie Manning, 9 Nov 2010