Anyone dealing with significant debt may wonder if others are in the same position. Florida residents file for bankruptcy for many different reasons, and Sunshine State debtors are not alone. The sheer volume of cases that enter federal bankruptcy court reveals hundreds of thousands of cases per year. While not everyone’s circumstances are the same, the figures show that bankruptcy filings might not be as uncommon as some assume.
Florida and bankruptcy filings
Those wondering about Florida bankruptcy statistics could look at the numbers reflecting filings up to May 2021. Florida saw 13,595 filings, with Chapter 7 liquidation bankruptcy reflecting 74% of the cases. Of the remainder, 24% were Chapter 13, a bankruptcy process that involves some debt discharges along with a repayment plan. Less than 1.5% of filers opted for Chapter 11.
Since the figure doesn’t cover the entire year, the annual figures are incomplete. However, Florida has far fewer overall numbers than California, which is a much more populous state.
Bankruptcy in the United States
Bankruptcy filings in 2020 added up to 529,106 people. The public won’t know the 2021 figures until the year comes to an end. So far, Florida is the state with the second-highest number of filings in 2021, but perceptions may change when looking at the percentage of the population filing.
What chapter the person chooses depends on individual circumstances. Some persons won’t pass the means test for Chapter 7, so Chapter 13 becomes a possible option. Regardless of the specific option, filing for bankruptcy could provide someone with a chance at a fresh financial start. Those struggling with debt and creditors may explore their options for bankruptcy protection.