How Economic Pressures Are Increasing the Need for Bankruptcy in Florida

McMann, P.A.
Mar 31
2 min read

Economic pressures continue to shape the financial landscape in Florida, making it more difficult for many individuals and businesses to stay afloat. Rising interest rates, inflation, job market instability, and increased living costs are all contributing factors that may drive more people toward bankruptcy.

At McMann, P.A., Attorney Mark McMann helps individuals in Lakeland, Tampa, Orlando, and throughout Central Florida understand their options when facing financial distress and navigate the bankruptcy process effectively.

Economic Pressures Are Increasing the Need for Bankruptcy

Several key economic factors are making bankruptcy a more likely outcome for many Florida residents:

Higher Interest Rates

Increased borrowing costs have led to higher monthly payments on credit cards, mortgages, and personal loans, making debt harder to manage.

Inflation on Everyday Expenses

Food, gas, utilities, and housing costs continue to rise, putting a financial strain on many households.

Rising Rent and Home Insurance Costs

Florida’s housing crisis and skyrocketing insurance premiums make homeownership less affordable and increase the risk of foreclosure.

Job Market Instability

While some industries are booming, others are seeing layoffs, leading to financial uncertainty for many families.

Medical Debt and Healthcare Costs

Many people are forced to take on significant debt to cover healthcare expenses, making bankruptcy an option for relief.

The increased need for bankruptcy may also affect the process and outcomes of filing:

More Case Filings Could Lead to Longer Processing Times

With an uptick in bankruptcy filings, Florida courts may experience delays in processing cases.

Stricter Scrutiny in Chapter 7 Means Testing

As more individuals seek bankruptcy relief, there may be closer examination of income and assets to determine eligibility.

Increased Creditor Challenges

Lenders and creditors may become more aggressive in contesting bankruptcy filings, making legal representation even more critical.

More Individuals May Opt for Chapter 13 Over Chapter 7

Given the economic strain, individuals who do not qualify for Chapter 7 may turn to Chapter 13 to restructure debts over time.

When Bankruptcy Becomes the Best Option

If you are experiencing any of the following, bankruptcy may be a necessary step toward financial relief: ✔ Struggling to make minimum payments on credit cards and loans ✔ Facing foreclosure or eviction due to inability to pay mortgage or rent ✔ Receiving harassing calls from debt collectors and creditors ✔ Falling behind on medical bills with no feasible way to pay them off ✔ Losing income or dealing with unexpected financial hardship

How McMann, P.A. Can Help

Filing for bankruptcy is a complex process, and economic pressures make it even more critical to have the right legal guidance. McMann, P.A. provides:

Personalized financial assessments to determine if bankruptcy is the best course of action.
Legal representation for Chapter 7 and Chapter 13 cases to protect your rights and assets.
Debt relief strategies to help you rebuild your financial future after bankruptcy.