Florida Attorneys Monitor Bankruptcy Rates

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Florida Attorneys Monitor Bankruptcy Rates

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Florida Attorneys Monitor Bankruptcy Rates

Transcript of Florida Attorneys Monitor Bankruptcy Rates

Page 1: Florida Attorneys Monitor Bankruptcy Rates

Florida Attorneys Monitor Bankruptcy Rates

Page 2: Florida Attorneys Monitor Bankruptcy Rates

Peter Carpio, a Florida-based lawyer with over a decade of experience in his field, began his career

by working in litigation and bankruptcies. Attorneys like Carpio expect to see Orlando-area bankruptcies fall in 2012, shrinking numbers to rates last seen in 2008, at the beginning of the

financial crisis and recession. However, bankruptcy rates may climb again in the new year,

as some forms of Bush-era tax relief measures expire.

Page 3: Florida Attorneys Monitor Bankruptcy Rates

Industry experts explain that a one-year moratorium on Florida foreclosures gave many families the breathing room they needed

to pay down consumer debt and get their finances back on track. In addition, Central Florida unemployment rates have declined and home prices have recovered, giving consumers more financial

stability. However, some attorneys expect the numbers of Florida bankruptcies to climb again in 2013. Orlando remains the most

economically distressed metropolitan region in the United States, and many families have avoided bankruptcy through debt

forgiveness programs. The Mortgage Forgiveness and Debt Relief Act of 2007 is set to expire on January first, and Congress and the

President do not seem inclined to renew it. That means that families will owe taxes on their forgiven debts. The tax burden could make debt relief unaffordable for many people who are

struggling financially, and drive more Central Florida households into bankruptcy.