Florida Bankruptcy Attorney Blog

The economy continues to tailspin as retail numbers make their largest decline in years. People often have no idea of the power of the consumer. Consumer spending is one of the largest portions of domestic GDP every year. The power resides not with corporate america, but with your average consumer. Forget about Wall Street being spooked. If your average consumer is spooked and not spending appropriately, the entire economy will begin to feel the harshest bite of a recession. Most of our clients are typical consumers, and we rely on the good faith of our consumer clients for our own bankruptcy business. Most Chapter 7 bankruptcies are consumer bankruptcies, and involve little to not distribution of any actual assets because most of the consumers that come are not able to make even basic credit card payments. Every consumer should have the right, once every eight years, to this kind of fresh start. Do not underestimate the power of the consumer to get back on his feet and get the economy running again.

As the continuing recent economic decline begins to move out of the financial sector and into the other main sectors of the economy, the question has begun to be raised whether we should "bail out" the Big Three automakers or let them fall into Chapter 11. The traditional remedy in these cases is certainly the Chapter 11, which was designed for situations like this. However, recent policy arguments have been raised that without government intervention into these broad sectors the entire economy will collapse. But what will happen if the Government's credit rating drops below AAA, and the United States itself begins to suffer from the economic malaise? One has to wonder how this would restore confidence in the economy as a whole. Redistributing the problem may have little to any impact. Bankruptcy may in the end prove the most viable solution. It would also force the domestic car manufacturers to improve their product line.

As sad as it is to see people who have worked hard their whole lives lose their home, sometimes it is inevitable that the auction sale will commence and the house will be forced to sale. Often vulture type investors swoop up these houses at the auctions, looking for a good deal. Obviously, this has been happening alot around Florida lately, given that this state along with a few others have shared the brunt of what has become known as the "housing crisis", which has caused a high number of bankruptcies to be filed recently as well.

Apparently, though, one might be able to find better deals than these elsewhere. I unbelievably overheard someone on the radio today reporting being able to buy a two story brownstone style condominium for one dollar! This individual apparently has heard of others doing the same (for very small sums like $100.00). Maybe foreclosure auctions aren't the best places to find some good house prices after all. Of course, it is likely this person could just have been lying.

In recent months Florida has recorded an unemployment rate higher than the national average, and one of the highest unemployment rates it has had in years. Unemployment is presently hovering around 7.1 percent. Last year it was around only 4 percent. This is certainly something that could impact bankruptcy filings. The Bartlett Law Firm has seen the number of bankruptcy consultations rise. Much of the problem in Florida likely stems from its higher than average economic reliance on the real estate market, where prices have plummeted in percentage terms at rates not seen in decades. The Orlando area, while critically impacted, does not appear to have been impacted as greatly as certain cities along the Florida coastlines, especially Miami-Dade and north along the east coast, and portions of Tampa. During these stressful times for many, our firm has been instrumental in helping many people not only file for bankruptcy, but also save their homes, and protect their cars from repossession.

Sometimes, the best thing for a client is actually not to file for bankruptcy. We have had clients come to us for our free consultation almost demanding bankruptcy, and in all honesty we had to inform them they were simply not a good candidate. This is part of our job as a lawyer, to assess what is in the best interest of our clientelle.

Sometimes the better solution was to work out a negotiation with their mortgage lender, or defend a foreclosure proceeding that was already instituted against them. We have been successful in helping our clients negotiate better terms on their loans, and in vigorously defending their possessions from seizure. Our goal is to make our client ultimately happy with the results they obtain, and advise them on how to get there.

We would like to remind Florida voters in and outside of our community that this election will likely impact your rights under the United States Bankruptcy Code. For example, Barak Obama and others have proposed substantial reforms that would make it easier to cram down and reduce total outstanding indebtedness on mortgage obligations. There are both positive and negative arguments regarding this new proposal. Back in 2005, when new legislation was passed under President George Bush, reforming the code, many people were surprised by how these changes affected their ability to file and their rights under the code. We encourage our clients and all consumers to be aware, before you take large financial risks, of the consequences for you if that financial risk ends up not working in your favor. Bankruptcy laws are changing, and it is always good to refer to a qualified Florida bankruptcy lawyer for advice- a lawyer who knows not only the Florida state statutes regarding creditor and debtor disputes (which often play into a bankruptcy), but also knows of course the Bankruptcy code and applicable rules.

The Bartlett Law Firm does not officially endorse any candidate but encourages all voters to go out and vote after being informed on the issues.