During the month of October Southern parts of the sunshine state Florida saw a sharp increase in bankruptcy filings due to pending foreclosures. Local attorneys claim that many homeowners are seeking bankruptcy protection because banks are pushing forward and foreclosing on mortgages that have become delinquent.
The U.S. Bankruptcy Court in Miami shared interesting statistics related to recent bankruptcy filings in southern Florida. In September of this year filings decreased by almost 12 percent but in October they rose roughly 19 percent. During the month of August, bankruptcies increased by 7 percent but October filings actually surpassed the number of consumers who sought protection.
Some attorneys in the state claim they were expecting to see a big increase in filings due to increasing efforts by banks to foreclose on homeowners. The state overall has seen a small decrease in bankruptcy filings over the past year by nearly 6 percent since the state is slowly recovering economically.
Yet, many cash strapped families are still struggling meaning the economic recovery in the state is still weak. It’s been reported that banks began issuing a slew of foreclosure notices in October which prompted many homeowners to seek bankruptcy protection. Many homeowners are also facing other financial issues including rising debt from medical bills and credit cards on top of mortgage payments they are unable to pay.
South Floridians seeking protection include a variety of people such as doctors and contractors. The numbers related to actual cases being filed tell another side of the story. In October, Miami-Dade County had close to 1,300 cases filed. In Broward Country close to 800 cases were filed.