Consumer Bankruptcies Filings Up 14%
Consumer bankruptcy filings are up approximately 14% since the same time last year. The causes of the filings are obviously the recession, unemployment and the housing crisis (the Big Three). In South West Florida, we know the big three all too well. It is expected that over 1.6 million people will file for bankruptcy protection this year.
I have mixed emotions on this issue. First, I think more people should consider the bankruptcy option. I can say this because I understand the bankruptcy process and the benefits it offers. Likewise, I have an open-mind to bankruptcy. I see many people who say that bankruptcy is the worst thing a person can do, and unfortunately, that is not true. Bankruptcy is usually not the worst option.
Second, from a purely economic standpoint, bankruptcy is good for society because it gets the bad money off the books and out of the economy. Second, it allows for a fresh start and gets people, who were formerly shunned from the economy, back into the game.
Third, bankruptcy is merely a form of financial planning. When you get right down to it, that is all it is. All this nonsense about strategic defaults of homeowners is just garbage. People have always made decision on when to cut their losses. If the mortgage companies thought that this would not happen, that was naive. You can only push people so far before they will push back. The mortgage companies and servicers have taken too much, and now the homeowners are saying no more.
Why doesn't someone tell our Elected Officials what is going on in this Country and Southwest Florida? Do you think we are that clueless? I think it's ironic that some of our elected officials are worried about losing their jobs?
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog, www.faircreditreportingactblog.com and www.fairdebtcollectionpracticesactblog.com, and the firm's mortgage modification blog.
