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.
Middle-class families in Florida and around the country are financially struggling and not making as much money as they used too. Additionally, many don't have as much hope for the future when it comes to their children eventually earning more than them.
Before the recession many businesses saw expansion in their future. But now, after the recession, a number of those once thriving businesses are filing for bankruptcy in order to once again gain financial control. There is always the chance this decision to file could in turn result in those expansion plans being revisited.
The downturn in the economy has hurt many consumers, which in turn has had a negative effect on some lending businesses, as people no longer have the money to pay back their loans.
Due to a change in consumer behaviors and the downturn in the economy, a local record store company that has been in business for 30 years, recently filed for bankruptcy in the hopes of being able to reorganize debts and remain open.
Patricia Kluge, a former socialite and entertainer to the rich and famous, has entered into Chapter 7 bankruptcy with her husband William Moses. And while the couple declined to comment on the exact details of the filing, it is known that the two had some business ventures that did not work out.
A sputtering economy like the current one hits every market sector, but entertainment ventures may especially be feeling the pinch as cost-conscious consumers trim entertainment expenses from their budgets.
When it comes to people who have gone through a foreclosure, a recent study has found that for many it wasn't because those homeowners were irresponsible with their budgeting, but rather that they defaulted due to the recession and should more be viewed as those who just had a one-time crisis similar to a divorce or medical crisis.
Freeman's Men Shop, a privately owned men's retail shop with two locations, recently filed for Chapter 7 bankruptcy. Both of the shops are now closed, which some industry experts say is a growing trend after the recession as more consumers shop at large department stores instead of locally owned independent stores.
Yacht maker Post Marine Co. Inc., which had been building yachts since 1957, recently filed for bankruptcy. Under this Chapter 7 bankruptcy filing the company will liquidate its assets to pay its creditors.