When one has access to credit but is experiencing financial difficulties, it can lead to serious problems. In some cases, one may be able to pay down the accumulated debt over a period of time. Unfortunately, for many people in Florida, the outpouring of creditors calling, legal actions being taken and the unwarranted threats coming from creditors can lead individuals into a psychological spin where they see bankruptcy as their only option.
It appears that the economy is improving, but many homeowners in Florida have yet to see it. Across the country, nearly 9.1 million homeowners owe more than 25 percent of what their home is worth. Further, many of these families are behind on their mortgage payments to the point where foreclosure is imminent. Filing for bankruptcy could provide homeowners with the time and space they need to make some decisions regarding their homes.
When financial strain becomes difficult to endure, many Florida residents consider filing for personal bankruptcy. Unfortunately, a wide range of myths and misconceptions surrounding bankruptcy lead some to postpone filing, while their debt outlook becomes even more dire. Savvy consumers will take the time and make the effort to get to the bottom of these common bankruptcy myths.
Last month, we wrote that more than one-quarter of American families struggle to pay medical bills. Medical debt is a leading cause of bankruptcy, and it may actually cause even more personal bankruptcies than mortgages and credit card debt. Many Florida residents think that they could never be crushed by medical bills because they have health insurance. The unfortunate truth, however, is that many people with insurance can end up facing unmanageable medical bills.
Florida residents with significant debt may wonder about ways to get relief. Many people believe that there is a social stigma associated with filing for bankruptcy. However, financial expert Suze Orman says bankruptcy is often a better choice than the alternative options.
Florida owners of rechargeable electric vehicles won't be using charging stations made by the recipient of a nearly $100 million grant from the U.S. government. Ecotality Inc filed for Chapter 11 bankruptcy, the latest industry casualty from the public's general lack of interest in electric cars. The San Francisco-based maker of recharging stations for the vehicles, along with five of its affiliates, announced it would be auctioning off its assets one month after the filing and asked the court that it be allowed to pay its employees and vendors.
The Florida Institute for Neurologic Rehabilitation filed for bankruptcy, and a judge has approved its reorganization plan because of the hospital's reports that it improved its cash flow. The bankruptcy was filed after reports that the facility was in debt ranging from $3 million to $30 million owed to between 103 and 346 creditors. A spokesperson for the medical company said that a rash of negative media reports about alleged patient mistreatment led to a major decline in revenue.
The Orlando-based healthcare tech company Rotech saw its debt restructuring plan approved by a federal judge. That court action allowed Rotech Healthcare Inc. to emerge from Chapter 11 bankruptcy reorganization, according to the company. Additionally, the judge approved $358 million in financing, which the company expects to close in on in September, thus ending its time in bankruptcy.
It can be difficult for some Florida residents to bounce back from bankruptcy. There are many things that can happen to put a person in financial distress. Unemployment or underemployment can reduce available funds to pay bills. Children can have unanticipated expenses. The combination of external factors may lead to an overwhelming amount of credit card debt. When continuing financial difficulties make it difficult to recover, a person might wonder how much time must pass before it is acceptable to file for another bankruptcy.
Few Florida residents plan on needing to file for personal or business bankruptcy; however, having some information in advance can help people understand a bit more about the process and the best way to help recover financially after filing.