Florida Chapter 7 bankruptcy, Chapter 11 bankruptcy and Chapter 13 bankruptcy filings may remain low in 2017 if consumers are cautious and careful. But situations happen that are out of your control. The bankruptcy outlook in Florida 2017 will depend on the stability of the economy.
There are always unique circumstances that lead to extensive debt. Whether your job is eliminated, your home interest rates skyrocket after or before a refinance, ultimately, you’re stuck with more bills than you can pay. This can occur after sudden illness or even investment losses.
Unsecured Debt After Holidays
Occasionally people mismanage credit cards and allow unsecured debt after holidays to pile up—especially if one event causes all bill paying to spiral out of control.
Shopping, paying bills using credit cards and paying for emergencies on a credit card with a high interest rate can cause debt to pile up. Maybe you take out a second mortgage to pay off credit card debt. Maybe you take a payday loan. Maybe your car breaks down and you have to buy but get a high interest rate.
When hard times hit, all of the above can become monumental tasks.
This kind of spending and borrowing to pay off cards may seem frivolous and manageable until a job is lost. A mortgage interest rate rises drastically. A new car payment becomes unaffordable. Suddenly all the careful planning goes out the window and causes bankruptcy to creep into the picture.
Can You Manage Credit and Debt in 2017?
When high interest rates on unsecured debt kick in by February 2017, or money is lost on an investment and savings is gone due to a break in employment for an illness, can you manage credit and debt in 2017?
There were many personal and business bankruptcies experienced by Floridians in 2016 who were working hard, paying mortgages on their homes, but who lost jobs and turned to Lanigan and Lanigan for help.
Deciding to File Bankruptcy in 2017
If you’re deciding to file bankruptcy talk with an attorney before you decide to file. Find out how the process works and whether you qualify for Chapter 7 bankruptcy, Chapter 11 bankruptcy or Chapter 13 bankruptcy.
You may think that a Chapter 7 bankruptcy is what you want to file. Well, you actually don’t get to choose: your income level, cost of living, debt, city and county determine your ability to file bankruptcy.
Have an attorney determine this factor for you through the Florida Means Test.
No Shame in Filing Bankruptcy
There is no shame in filing bankruptcy because although the economy is strong now, people still lose jobs unexpectedly. And in the history of the United States, bankruptcy was created to establish a fresh start after a failed business venture or personal financial catastrophe.
Divorce, medical bills, emergencies, deaths, health issues, still happen and may send a balanced bank account sideways. People lose jobs, have personal and professional disasters that affect finances and make debt insurmountable.
No One Knows You Filed Bankruptcy
If you file bankruptcy, there is no public shame or an announcement made to your friends, neighbors, employers or business associates. While newspapers publish bankruptcy notices, few if any other people outside of your immediate family will know you filed. For the most part no one knows you filed bankruptcy unless you tell them.