Southern Florida Bankruptcy Law Blog

Rising medical costs and high levels of credit card debt have been consistent themes in the news over the last few years. As people in Florida continue to weather the economic recession, they are resorting to credit cards pay their bills, even for astronomical medical expenses. A new study found that more and more Americans are facing a significant amount of credit card debt as a result of paying for medical treatments.

The study, conducted by non-profit groups The Access Project and Demos, surveyed people with health insurance and those with no coverage. Shockingly, one of every four Americans has difficulty covering their medical expenses and two-thirds of those individuals have access to health insurance.

Although race is not always an indicator of financial woes, could bankruptcy filings have more bias than some think? A recent study is prompting bankruptcy professionals in Florida and across the United States to reflect on the issue. The study also points out the importance of choosing a bankruptcy attorney carefully who can support his or her client's best interests during the complicated process.

When it comes to filing Chapter 13 bankruptcy, a new study shows that black people are about twice as likely to file for this type of bankruptcy as white people. The study suggests that lawyers are leading black people toward Chapter 13, which is typically more expensive and time-consuming. It is also considered less successful than Chapter 7 filing. A news report says while Chapter 13 filers have good intentions in mind, they sometimes fall short of fulfilling their payment plans and end up back where they started.

It's no secret that the recession has spread hardship throughout Florida and the rest of the country. As conditions worsened and more people lost their jobs, an increasing amount of individuals found themselves in the difficult, often heartrending, process of bankruptcy or foreclosure filings. A recent report indicated that South Florida saw a decline in personal bankruptcy claims in 2011, which hasn't happened in five years. While this is perhaps a good sign, foreclosure proceedings inundating local courts and employment concerns may be why the numbers fell over the course of the last year.

Attorneys in the region have indicated that many people are still at the point of declaring bankruptcy. However, other financial issues, such as foreclosures, are demanding much of the time in the courts, for the yearly number of foreclosure claims nearly tripled between 2007 and 2010.

Palm Beach County has been hit hard by the foreclosure crisis. When banks bring a Florida homeowner to court to foreclose on their home, the bank is required to prove that they own the mortgage. However, sometimes the bank is unable to do so and has to dismiss the foreclosure case for failure to produce the required documents.

In 2008 a Palm Beach County homeowner hired legal counsel to defend against a foreclosure. The main point of the case was that the foreclosing bank appeared to have been using falsified documents as a basis for the action. When the homeowner questioned the validity of the documents offered by the bank, the bank dismissed the action, but the homeowner's lawyer continued to press the case. The bank and the homeowner later settled the case.