Miami Florida is known for its extravagant lifestyles and its beautiful coastlines. The majority of people do not consider the fact that Miami is also considering filing for bankruptcy and that its residents are also filing bankruptcy with statics that may not be very accurate. While we now know that the city itself is in severe financial trouble and considering filing for bankruptcy, but the statistics on residential bankruptcy may not be accurate.
Most experts in the Miami city believe that the latest bankruptcy statistics are not represented correctly because many residents cannot afford the court costs, and that as soon as taxes are filed, the statistics will reflect a much higher number because they will be able to afford the court costs associated with filing bankruptcy.
Filings for bankruptcy are down since January, but much higher than they were a year ago. It is thought by lawyers and city officials that the statistics are not exactly accurate. They believe that the reason for the drop is the economy. Many residents are waiting for their tax money to arrive so that they may continue the filing process. The average salary for most residents is only around $29,000, which can account for the need to wait to file for bankruptcy.
This could mean that over the course of the next couple of months, we will see a massive amount of bankruptcy filings in Miami as tax returns make their way into the resident’s bank accounts. So the statistics for bankruptcy will again be much higher than they were a year ago.
It is not just the residents that are filing for bankruptcy, but the city is also considering filing for bankruptcy. They may be able to avoid this measure if they can do one of a couple of things. They could renegotiate union contracts or lay off city employees. If the city cannot make one of those two things happen, and happen soon, Miami will find itself filing for bankruptcy.
The economy is shown in its most blatant form here in Miami. The amount of residents filing for bankruptcy is much higher than previous years and the city of Miami itself is also a victim in these hard economical times. Residents are also seeking help from local bankruptcy attorneys to ensure that they are filing properly. Miami bankruptcy lawyers are being utilized now more than ever because of the fear of accidentally committing bankruptcy fraud. Check back soon to find out more about Bankruptcy fraud.
February bankruptcies down 5% from January, March 01, 2011|By Marcia Heroux Pounds, Sun Sentinel