Florida was one of the states hardest hit when the housing bubble burst. As we mentioned in a previous post, Orlando was hit hard by bankruptcies and foreclosures, but there are signs that we may have turned the corner.
A recent report showed than Central Florida bankruptcies hit the lowest mid-year mark since 2008. About 9,200 bankruptcies were filed in Orlando’s five county area, which is an 11 percent drop from the same time last year. Is good news on the way?
There are several intersecting reasons for the decrease in bankruptcies.
- Robo-signing is down, if not eliminated, which means that fewer people are in home foreclosures.
- The decrease is not an anomaly, but a pattern. The decrease began in 2011.
- Election year optimism, for unknown reasons, typically causes a decrease in bankruptcies.
The downward trend in the Orlando area is being felt throughout the state. Statewide there has been a 14.2 percent decrease in bankruptcy filings with 42,263 cases during the first half of 2012. Nationwide, bankruptcy filings are falling as well, although not as much. Bankruptcies in the nation fell 13 percent. Florida ranks 14th in terms of bankruptcy filings.
It may be a bit early to schedule any celebrations however. Looming on the horizon are increasingly speedy foreclosures, discontinued unemployment benefits and the potential expiration of federal foreclosure-relief legislation at the end of 2012.
Bankruptcy is not right for everyone, but it is an opportunity for some to gain a fresh start. Meeting with a bankruptcy legal professional for an evaluation is the first step.
Source: LoanSafe.org, “Central Florida Bankruptcies Hit Lowest Mid-Year Mark Since 2008,” Akex Ferreras, Aug.3, 2012
At our Orlando law office we assist our clients with Chapter 7 and Chapter 13 bankruptcy filing, including those that involve home foreclosure actions.