Bankruptcy is a legal proceeding in which a debtor declares their inability to pay off their debts. The Fort Lauderdale Division of the United States Bankruptcy Court oversees bankruptcy cases filed in the Southern District of Florida. According to the case filing statistics available on the court’s website, bankruptcy filings in Fort Lauderdale have seen significant changes in recent years.
Chapter 7 bankruptcy is also known as liquidation bankruptcy, in which a debtor’s non-exempt assets are sold to pay off their creditors. In Fort Lauderdale, Chapter 7 filings have decreased steadily from 2020 to 2022. In 2020, the Fort Lauderdale Division had 2,051 Chapter 7 filings. The number dropped to 1,695 in 2021, followed by 1,008 in 2022.
Chapter 11 bankruptcy is primarily used by businesses to restructure their debts and assets. In Fort Lauderdale, Chapter 11 filings increased slightly from 71 in 2020 to 76 in 2021, decreasing to 57 in 2022.
Chapter 13 bankruptcy allows individuals with regular income to reorganize their debts and pay them off over three to five years. The Fort Lauderdale Division has observed a decline in Chapter 13 filings in the past few years. In 2020, there were 1,415 Chapter 13 filings, which decreased to 1,268 in 2021, followed by a minor increase to 1,343 in 2022. Due to the anticipated rise in foreclosure filings, I expect a surge in Chapter 13 filings since they typically relate to the rise in Chapter 13 cases.
The Fort Lauderdale Division of the United States Bankruptcy Court has seen a significant decrease in bankruptcy filings in recent years. The reduction in filings could be attributed to several factors, including the government’s financial aid programs. If you are struggling with debt, you need to seek the advice of an experienced Fort Lauderdale bankruptcy attorney who can help you navigate the bankruptcy process and guide you toward the best possible outcome.
Source: United States Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division Case Filing Statistics. Retrieved from https://www.flsb.uscourts.gov/statistics/ft-lauderdale-case-filing-statistics.
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