Florida lawyers’ concerns based on a 70% increase in Chapter 11 filings over last year.

Florida – February 28, 2023

Florida lawyers are paying attention to the national bankruptcy trends, specifically the 70% increase in Chapter 11 filings over the last year even as the state has not experienced this high rate overall. The housing market continues to cool but it still strong in Florida and may impact businesses that survive on housing renovations or furniture and appliance sales. Signs of jeopardy are starting to reveal themselves through bankruptcy filings in the Southern District and Middle District of Florida for construction and real estate businesses. Car payment defaults are up, and Chapter 7 and 13 filings are up slightly. Individuals who are struggling along with a slowing of business or personal income may want to hire a Florida business law attorney to explain the types of bankruptcy actions and how it may benefit them.

Staving off corporate bankruptcy.

Companies may act against bankruptcy by keeping costs low during tumultuous economies. Depending on the business structure and the number of employees and clients, it may be wise to lease equipment toward purchase as a business grows. Although there are specific benefits to leasing equipment such as the ability to give it a trial run before outlaying large sums of money on equipment that may not be what the business really needs overall. The types of equipment that businesses lease commonly includes machinery, vehicles, industrial appliances, furniture for office or restaurants, computers, servers, and copy machines to name a few. An experienced business law attorney can guide companies at each stage of growth and assist them with decision on how they will spend their revenue, such as leasing over purchasing to maintain fiscal strength.

Bankruptcy.

Bankruptcy proceedings are legal actions involving a person, or business entity that is unable to repay outstanding debts and are managed by federal courts that follow the rules of U.S. Bankruptcy Code. The bankruptcy process begins with the debtor, or a representative of creditors filing a petition with bankruptcy court. All bankruptcy cases in the United States are managed through federal courts and decisions are made by bankruptcy judges who determines debtor eligibility and debt discharges.

The common types of bankruptcy actions include Chapter 7, Chapter 11, and Chapter 13. These bankruptcy proceedings may help individuals, but it is wise to contact a bankruptcy attorney to determine if there are other ways to resolve overwhelming debt. The most common advantage to filing a bankruptcy petition is that debt collectors will have to stop harassing debtors with phone calls, letters, and potential lawsuits. This action is an automatic stay, and creditors must cease actions for repossession, wage garnishment, foreclosure, and bank levies.

Hire a business law attorney.

Business owners and individuals concerned about their personal financial stability should seek the assistance of an experienced business attorney to address an unstable economy and concerns over thriving businesses they depend upon. Attorneys at Legal Counsel, P.A. will answer pointed legal questions and review necessary documents to determine if a business is following Florida and Federal laws and regulations and how to avoid or embrace bankruptcy toward future economic stability.

Legal Counsel, P.A.

189 S. Orange Ave., Ste. 1800
Orlando, Florida 32801

Phone: 407-982-4321

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