Bankruptcy trends tend to follow economic cycles. Typically, when the economy is good and housing prices are stable, consumers spend more freely and rack up more credit card debt. Then when something happens, like a job lay-off, medical emergency or divorce, those consumers are in a financially vulnerable spot. This in turn leads to an increase in consumer bankruptcy filings.
While student loan debt is surely a burden for a college graduate who is financially struggling, it turns out that this mounting debt is also a burden on the potential recovery of the housing market in Florida and around the rest of the country.
In an effort to try and help homeowners avoid foreclosure, the government created the Home Affordable Modification Program. And while the actually number of people helped has not hit anywhere near the targeted goal of 3 to 4 million, the number of homeowners who qualified for a permanent mortgage modification did increase by nearly 16,000 between July and August.
The developers of Star Tower in downtown Orlando, Florida, have filed for Chapter 7 bankruptcy protection.
Even though the number of bankruptcy filings for the U.S. Bankruptcy Court Middle District of Florida is reportedly decreasing, experts are saying that the tough financial times are far from over, and that many will continue to struggle.
When people move into a new home they tend to also buy new furniture. However, with the recession and housing market crash, not as many are out buying new couches and tables for their home. Because of this, furniture sales in Florida have decreased, leaving many furniture retailers with no other choice but to file for bankruptcy in the hopes of restructuring.
A once-fast paced homebuilder that started his company in 1956 and over the years has expanded to eight different states - including Florida - recently had to file for Chapter 7 bankruptcy protection. Like many homebuilders over the past few years, business was expanding several years ago, but due to the recent housing crash, Pasquinelli Homebuilding LLC just wasn't able to profitably continue to operate.