The U.S. Bankruptcy Court Middle District of Florida recently reported that filings from January to August 2011 are down 16% from 2010's annual rate. However, despite this decrease, the Middle District is still one of the most active in all of the United States for bankruptcy filings.
From July 2010 through June 2011, Florida was number 3 in the number of filings, with 59,199 filings. The number one slot - the Central California District - had 145,741 filings, which is a huge difference. Nevertheless, pushing nearly 60,000 filings is a clear sign that Florida is still hurting in the current economic climate.
The Middle District of Florida comprises over half of Florida's 67 counties at a total of 35 counties, which includes Jacksonville, Orlando, Daytona, Tampa, and Fort Myers. Bankruptcy filings have slowed down likely due to the slowdown in foreclosure filings. With foreclosure filings down based on allegations of robosigning and inconsistent documents, the need for bankruptcy has diminished some. With the amount of homes lost to foreclosure down, there isn't as much of a need to file for bankruptcy.
At the current pace, 2011 may end with around 55,910 filings, which is down about 11,000 from last year. However,with foreclosure filings on the rise again, it is likely that bankruptcy filings may pick up, too. If a homeowner is facing foreclosure with a home upside down, there is not always reprieve from the possibility of a huge judgment being entered. Bankruptcy can sometimes often protection in this scenario. Whatever way the current financial setting turns, it will likely impact bankruptcy filings - either for better or for worse.
