Foreclosure Scandal Leads To Bankruptcy Slowdown
Florida Bankruptcy Rates Decrease By Fifteen Percent From Previous Year
According to numbers released by the Florida District U.S. Bankruptcy Court, last years record number of bankruptcies has slowed down, with a fall of 15% at the year's midpoint.
Experts in the financial law field say that the large decline is primarily the result of a reduction in the number of foreclosures, which fell sharply due to recent scandals unearthed by various investigators into mortgage practices and robo-signing 'foreclosure mill' law firms.
Tough economic times have caused a rapid increase in the yearly bankruptcy rates, as hard hit homeowners struggle to make ends meet. As annual reports from the U.S. Middle District Bankruptcy Court show, the number of filings began to rise after 2006, when there were only 15,304, eventually climbing as high as 66,618 by 2010. This record high reflects the ease with which the average person can slip into debt in the troubled economic climate.
Reduced Foreclosure Rates Ease Economic Burden
Attorneys working at bankruptcy law firms and foreclosure defense firms have noticed a sudden reversal of the recent trend this year, however. Mid-year data released by the Middle District shows a decline in the bankruptcy filing rate, with some districts reporting as much as a 17.5% decrease.
This decrease can be directly attributed to the decline in foreclosures after the corruption scandals of the previous year, says one foreclosure attorney. She warned, however, that the decline would not last.
"As the banks engage new counsel and implement new procedures," she claimed, "we believe that the foreclosure activity will resume, followed by increased bankruptcy filings."
Act swiftly! Contact a Florida foreclosure defense lawyer as soon as possible!
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Due to rampant corruption in the
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