Bankruptcy Filings Remain Low

My experience is that inquiries about filing bankruptcy are gradually increasing. Activity in my office is at least double the level of the December through February period. Yet, I find that number of prospective bankruptcy debtors still is significantly below levels prior to 2006 which had unusually high filing rates due to the new bankruptcy law. Over the past few years a large amount of bankruptcy debtors in central Florida attributed their financial problems to economic disruption over their businesses or employment caused by the 2005 hurricanes. Some people still blamed 9/11 for their problems. It may be several more years before people in central Florida find causes for their financial woes other than the hurricanes and the terrorist attack.

About 25% of phone inquiries about bankruptcy inquire whether people can still file bankruptcy under the new bankruptcy law. I have heard other attorneys report similar questions from prospective clients. The new law seems to have changed people’s inclination look at bankruptcy as the easy solution to financial woes. The unemployment rate in central Florida is far below the national average. People who want work in our area can find a job. Absent deterioration in Florida’s economy or some other unexpected external interruption it appears that bankruptcy filings will remain low compared to the decade prior to the new law.

posted by Jonathan Alper, bankruptcy and asset protection lawyer, Orlando, Florida