Miami Bankruptcy Statistics: Gloomy for City and Residents

Dollar Sign.jpgFlorida leads the nation in its number of foreclosed homes, accounting for 25% of the Nations foreclosed homes. Many of Florida’s major metropolitan areas like Miami are being adversely affected by the increasing numbers of foreclosures and subsequent bankruptcies. Florida’s overall foreclosure filing rate for January 2011 was one notice for every 409 homes. The Miami-Dade county Clerk of Courts indicates that there were 1,000 foreclosure filings for January 2011. According to RealtyTrac the number of foreclosures filings for January 2011 in the Miami area was 1 for every 460 homes. This is less than Florida’s overall average of 1 foreclosure filing for every 409 homes. Miami Foreclosures are experiencing a sharp decrease from 2010 which had a total filing rate of 34,400 foreclosures and during January of 2010 there were 4,128 Miami foreclosure filings. The number of foreclosures seems to be on the decline for this area.

The overall number of Miami foreclosures is having an impact on the city itself. An abundance of foreclosures leads to unpaid or in the case of banks experiencing the homestead exemption benefits under paid property taxes. All of the Miami foreclosures leave many houses vacant and in a state of general disrepair. Houses under foreclosure do not even get the yards mowed or watered regularly, leaving many once pristine neighborhoods, looking quite shabby and run down. The Miami Herald reported on January 9, 2011 that the foreclosure process in Florida takes 2 years to complete. This means a huge back log for the Federal Bankruptcy Court systems. There are many Foreclosure Attorneys in the area that are available.

While there is a sharp decline in the number of new foreclosure fillings there is a sharp increase in the new filings for bankruptcy in the Southern District of Florida’s US Bankruptcy Court which Miami is a assigned to. There were 2,377 new bankruptcy filings for January 2010 in the Southern District while January of 2011 saw 2,758 new bankruptcy filings. Even thought there are almost 75% less foreclosure notices being filed the numbers of bankruptcies is on the rise for the Miami area.

All bankruptcies are handled at the Federal level, not the state level. There are several types of Bankruptcies that an individual or married couple may file for. An individual or couple may file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 Bankruptcy requires the liquidation of assets (there are some exemptions) to repay your debts. Chapter 13 requires the filing of a repayment plan for all or some of your debts. Under chapter 13 there is no liquidation of your assets. The bankruptcy and foreclosure processes are both very complex to navigate through. An experienced Miami Attorney that specializes in either foreclosure or bankruptcy may prove to be invaluable. The cost for services can vary from Attorney to Attorney and law firm to law firm.

Links:

Clerk of Courts, Miami Dade County Florida

Foreclosure crisis hits home for all, Sunday January 9th 2011