Residents of Florida who are struggling to make ends meet and have enormous amounts of debt may consider filing for bankruptcy. While each case depends on individual circumstances, there are some basic guidelines that can help people asses if bankruptcy is their best bet. Filing for bankruptcy can give someone a fresh start, but it is not without consequences.The main drawbacks associated with bankruptcy are loss of high-value assets and limited access to credit. If someone has certain types of property, it may be sold to pay off creditors during the bankruptcy process. Additionally, following a bankruptcy, credit will be limited and may be difficult to get without high interest rates and fees. It is also important to note that filing does not always discharge all debts. For example, student loans are often not covered by bankruptcy, but most debts are covered by filing.
Several years ago the economy took a turn for the worst and the U.S. was declared as being in a recession. This led to a number of Florida residents struggling to keep up with credit card and mortgage payments. Thousands of people -- who were normally very responsible with their money -- ended up filing for bankruptcy.
Even though there has been a decrease in the number of bankruptcies being filed in the Middle District of Florida, the district is still considered to be one of the areas harder hit by financial strife as the overall number of bankruptcies is still higher than most other parts of the country. And with foreclosure rates expected to rise again in the near future, the number of bankruptcy filings is also expected to once again increase.
When looking at last month as compared to June of 2010 there was a 5 percent decrease in the overall number of personal bankruptcies filed. As of now many analysts are reporting this trend to actually be in the opposite direction of earlier predictions, and has some viewing this decrease as representing an upturn in the economy that had been down for a number of years.