Bankruptcy filing has been reduced by almost 20% in Florida. Studies have shown that foreclosure and bankruptcy have shown some correlation. Though real estate market is not flooded with foreclosure and short sales, but “distressed” property sales made more than 43% of all closings in the month of March according to Key property Partners.
According to Los Angeles based bankruptcy law firm Recovery Law Group, only 3.5% of population of Jacksonville had filed for bankruptcy since 2007. Despite 46% homes being underwater in Florida, many people are looking for ways to get rid of their negative-equity home through bankruptcy filing. It is important to note that there isn’t a 1:1 ratio from foreclosure to bankruptcy or vice versa. Sometimes, people who don’t own home also file for bankruptcy while there are times when people who have had their home foreclosed have not needed to file for bankruptcy. however, a correlation does exist between the two. If the home is underwater, involuntary or planned foreclosure will occur which might be followed by bankruptcy in some cases. in case you have any questions regarding short sale, foreclosure or bankruptcy, you can direct your queries at experienced bankruptcy lawyers by calling 888-297-6023.