Business and economic information you need to know
Oct 9, 2008 9:39 pm US/Eastern
More Consumers Eye Bankruptcy In A Time Of Crisis
MIAMI (CBS4) ―
New numbers show a record number of people living in South Florida are filing for bankruptcy. We checked with lawyers who are so busy they could work round the clock.
"It is important that people realize it could happen to them," said a South Florida woman to
CBS4's Jorge Estevez. Even though she was fine with showing her face for our television interview, we have kept her name out of this story. That is somewhat fitting considering she could be any one of us. "Life is beautiful and right now it is sad to say that I am not enjoying life to the fullest," she said.
Life for her has changed over the past year. "I used to go out dancing. You have to have money to go out dancing. I used to go out to restaurants buy clothes go to the hair salon I don't even do that anymore," she said as her voiced cracked a bit while maintaining an optimistic smile.
Our woman made an appointment with a lawyer specializing in bankruptcy. Medical bills wiped out her savings, which she now needs to help pay for her bills and a home which like so many in South Florida has lost its value.
"Things happen people make mistakes they want to give you that second chance, " said Mary Reyes, a lawyer specializing in Bankruptcy. More than 12-thousand people wanted that second chance and filed for bankruptcy this year compared to 7-thousand last year. That's a 75% increase, but bankruptcy may not be a good solution for everyone.
"I take into consideration their income; I take into consideration their assets and I take into consideration their debt," said Reyes.
It's like a formula. Keep in mind Bankruptcy stays on peoples credit for seven to ten years. For some, it may be a way to wipe away more than just a debt and give you a chance to start over.
"Everything is going to be OK.," said the woman.
If you need help, most lawyers give free consultations, but if you decide to file, the fees start at more than one thousand dollars.
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