The number of bankruptcies are increasing in Florida and it’s estimated that bankruptcies are on the rise across the state with article filings up an unprecedented 11% over the last year. Even though the rate of bankruptcies in Florida is rising slower than the rest of the country, this is still cause for concern especially with a large number of debtors in the Florida economy.
Usually an increase in bankruptcy would suggest that there is a problem with the economy but the Florida economy and job outlook seems to be healthy over the past few years. Wages are working to take up and the series of jobs which are available across the state are showing signs of a stronger economy. Debtors are taking on more debt than ever before and it’s becoming more difficult for many people to work at paying down these large sums of money.
Some Of The Leading Causes of debt in Florida
In a survey of credit and debt or meetings, creditors and debtors work in an interview situation in which the creditors will ask questions on the nature of the debt. Understanding what caused the bankruptcy and what is cited for bankruptcy leads to a series of statistics that can be used to measure current economic conditions. Under the common question of what caused the bankruptcy in these meetings, most people suggest that the economic crisis was partially related to their need for bankruptcy. Job loss and medical bills continue to offer some of the main reasons for bankruptcies across the state of Florida.
There are some interesting circumstances that can come up as well. There have been cases of bankruptcy in which individuals were forced to go bankrupt after cosigning loans for other people or during times in which jobs were cut or hours were cut at work after a long time.
Stories of bankruptcy can often be quite eye-opening and most of the time that people face bankruptcy it is considered to be one of their last choices. Handling large debts before they get out of control and working to maintain your credit rating can be widely important.
Should I Sell Assets
In many 341 meetings with creditors, there is a section of the meeting that is entirely dedicated to determining the assets of a debtor. Trustees are interested in learning if there are any types of assets that could be used to pay off a creditor. Is selling a large asset could pay off a creditor quickly, a debtor could work at a settlement much more quickly. A trustee may suggest that if a family has an extra car or even a leisure vehicle it could be possible to sell off this is an asset to work at a settlement deal with creditors.
Selling a vehicle of sufficient value and picking up a used vehicle could be another option the trustee would consider. These types of creative solutions can often come up during these 341 meetings and lead to a greater discharge of the debt which can solve a bankruptcy case faster.
Trustees do not always look towards the best interests for your long-term financial consideration but rather how you can pay off the debts that you all as quickly as possible. If you own a vehicle free and clear or a series of assets that could be appreciating long-term, a trustee will likely be looking toward selling them as soon as possible at their current value so that they could recoup some of the losses associated with your credit account.
Selling your assets can often be an important part of managing your debts but if you are working to prepare for bankruptcy yourself, it may be wise for you to prepare accordingly by selling off some of your assets before a trustee makes the decision for you.
If you are confused about the process of bankruptcy or you would like to have an advocate on your side through the process, speaking to a bankruptcy attorney can often be one of the best ways that you can manage a Chapter 7 or Chapter 13 bankruptcy case. Distress with debt can be a difficult process. Working with a qualified bankruptcy attorney can make sure that you are well prepared for a 341 meeting, working with a trustee and preparing your bankruptcy case accordingly.
By working with our qualified bankruptcy attorneys we can make sure the process of discharging your debt can be handled more easily. We want to advise you in the process of managing your debts and finding the best options to suit your needs. Contact us today and we can begin the process of building your case and advising you on assets to sell before you start the process of bankruptcy. We want to ensure you are well set up for the process of bankruptcy and managing or discharging your debts over the long term.