While living with some form of debt is normal in today's society, life can get difficult when one's debt grows and consumes most or all available funds. Consumer debt is a major issue. However, it is not the only major source of debt plaguing individuals and families across the nation. Medical debt can quickly become unbearably overwhelming, especially in matters where certain medical procedures or treatments are not covered by insurance. In many instances, getting the medical care one requires quickly turns into filing for bankruptcy to rid oneself of these financial burdens.
With holiday shopping in full swing, many are more self-aware of their spending and current debts. Credit card debt can create many burdens, but this is not the only type of debt that can weigh a person down for a long duration. More significant debt, such as a mortgage, auto loan, medical bills, and student loans can stick with a person for decades. While bankruptcy can help reduce and eliminate certain debts, this process cannot erase all financial woes.
While California tops the list for the highest number of bankruptcies in a state, the state of Florida comes in second. On average, around 94,000 individuals in Florida file for bankruptcy each year. This is a large number of people dealing with financial troubles. The purpose for filing may be similar; however, the reason for filing can range greatly among individuals and families in the state.
Although unemployment remains low and wages continue to rise, the number of people in Florida who are filing for bankruptcy is on the uptick. According to numbers reported by a major Florida media outlet, bankruptcy filings have increased by 11 percent across the state. In the vicinity of Tampa and Central Florida, the increase is closer to 12 percent.
South Florida residents would be aware that the two most common methods of filing for bankruptcy are under Chapter 7 and Chapter 13 of the United States Bankruptcy Code. While both of these methods are established debt relief methods, there are several differences that all bankruptcy filers should know.
Many people in South Florida have either faced creditor harassment in the past or are facing it currently. In addition to the notices sent by creditors and collection agencies, those people have to deal with incessant telephone calls and messages, not just to themselves but also to people who are close to them. In fact, some debt collectors are even known to have called people at their workplace. The harassment can, sometimes, also include threats of violence, profane language and misrepresentation of facts.
Financial challenges arising out of accumulated debt are sometimes so overwhelming that many people find it difficult to cope with the pressures and force themselves into filing for bankruptcy. Bankruptcy is definitely a foolproof way of eliminating debt but a person should consider a bankruptcy filing only after exploring the other debt relief methods that are available. In fact, the Federal Trade Commission strongly recommends that people try various debt relief methods before they decide to file for bankruptcy.