A recent report by a bankruptcy study group shows a sharp rise in demand for bankruptcy attorneys, particularly in Florida. Both Chapter 7 and Chapter 13 bankruptcy rates have both soared in Florida, California, Arizona and Nevada as a result of the real estate market collapse and recession.
Florida’s housing market was particularly hard hit by the housing bubble and economic downturn. Ours was among the few states that experienced both the largest rise in real estate prices before the bubble burst and the quickest and deepest drop in prices afterwards.
Foreclosures are one reason for the rise in both Chapter 13 and Chapter 7 bankruptcy, but unemployment caused by the recession is causing many consumers to find themselves with unmanageable debt.
The study of bankruptcy trends was performed by Robert Half International shows that, as a direct result of soaring demand, hiring by bankruptcy law firms is sharply on the rise. Fully a third of bankruptcy firms surveyed reported they had added lawyers, paralegals and/or legal secretaries since 2007.
“Data for 2010 shows that demand for Chapter 7 and Chapter 13 bankruptcy filings in Nevada and Florida are exceptional,” said an official from the firm.
Filings for consumer bankruptcy under both Chapter 7 and Chapter 13 are expected to continue to go up through at least the end of the year. Chapter 7 and Chapter 11 business bankruptcy filings are also on the rise and expected to continue doing so until the economy and demand for consumer goods begins to grow.
“Report: Nevada and Florida Bankruptcies Drive Bankruptcy Attorney Demand Higher in 2010” (Personal Finance Bulletin, September 27, 2010)