Bankruptcy in Florida's middle district down 16 percent
The U.S. Bankruptcy Court Middle District of Florida has reported a 16 percent decrease in bankruptcy filings during the first eight months of 2011 compared to the same period last year.
The U.S. Bankruptcy Court Middle District of Florida has reported a 16 percent decrease in bankruptcy filings during the first eight months of 2011 compared to the same period last year.
According to the Jacksonville Daily Record, the pace is significantly lower than last year's record rate of bankruptcy filings with the Jacksonville region alone recording a 13 percent decline compared to last year.
“The Middle District, one of the largest in the nation, continues to have a higher volume of existing and filed cases than almost any other district,” Michael Freed, Florida managing partner of the Brenna, Manna & Diamond firm, told the newspaper. "Bankruptcies often follow from foreclosures."
Freed added that the irregularities in documents from lenders and servicing agents have partially contributed to the amount of foreclosures in the region.
Foreclosure proceedings can be temporarily halted with a bankruptcy filing. "The automatic stay" is initiated when a debtor files for protection under bankruptcy law and stops all creditors from continuing collection activities, including mortgage lenders. The automatic stay is lifted when the debtor emerges from bankruptcy protection.
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