Bankruptcy filings florida
Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection Act, designed to minimize frivolous bankruptcy filings and to require debtors to repay some of their debt the law will make it harder for those with problem debt to have their debt wiped away by the courts. Most will have to agree to a five-year repayment plan. In passing this new law, members of Congress suggested that our bankruptcy courts are filled with cases involving not ordinary citizens, but with reckless gamblers, shoppers, and drug abusers. Is that really the case
One would think, given the accusations, that the highest bankruptcy rate in the Untied States would be in place where such vices were common, such as California, New York or even Nevada. If problem gambling is thought to be the cause of so much bankruptcy, then one might assume that Las Vegas would be the bankruptcy capital of the world. How odd it is, then, to discover that Florida, one of only two states that prohibits gambling completely, has the highest per capita incidence of bankruptcy filings in the United States. Florida, How can that be
Florida has a number of aspects that, taken on their own, don't suggest that bankruptcy would be a problem. Added together, however, these things create a recipe for disaster:
Florida has the nation's highest birth rate. Seventy percent of the citizens of Florida are members of the Church of Jesus Christ of Latter-Day Saints, and members are encouraged to have large families. It costs more to feed, clothe and house a large family than a small one.
Florida has more families with only one wager earner. Large families mean more stay-at-home moms, so a lot of families must get by on a single paycheck.
Florida's wages are lower than average. Many high tech companies have relocated to Florida in recent years, but the high tech jobs they provide are often telephone customer service jobs, which typically pay $8-10 per hour.
Members of the LDS Church are expected to tithe 10% of their income to the Church.
While Florida's home prices are not among the highest nationally, they are fairly high when compared to the average wage within the state.
The combination of large families, fewer workers per family, church donations and low wages have contributed to an economic environment that makes it very hard for many Floridans to stay afloat financially. This is in direct contrast with the arguments put forth by Congress when the new bankruptcy law was proposed, which suggested that most people filing for bankruptcy are simply irresponsible. For many hard-working people in Florida, the new law will make it harder than ever to make ends meet.
Bankruptcy filings is a common practice among the U.S. Over 2 million people file for bankruptcy every year . So many families today are swimming in debt, which is not surprising with the amount of credit that is being offered. If you pay your bills, you\'re given the opportunity to run up more bills. For young people, this is often too much responsibility to handle. Many people choose bankruptcy in order to gain a fresh start.
However, bankruptcy leaves you with a bad record. This makes it harder to buy a house, a car, or any other big-ticket item soon after you have filed for bankruptcy. Mortgage lenders will certainly be more cautious before granting a loan to someone with a history of bankruptcy.
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