South Florida Bankruptcy Filings Take Sharp Downturn

Buoyed by an improving economy, businesses across South Florida reported a lower rate of bankruptcy filings through the first quarter of 2015 compared to the year prior. According to a report published by the US Bankruptcy Court for the Southern District of Florida, 59 businesses filed for Chapter 11, down from 87 in the first quarter of calendar year 2014. Through the worst years of the financial crisis, the average number of bankruptcy filings for South Florida businesses edged even higher. Growth in South Florida’s hospitality and real estate markets is responsible for the majority of the decline in business bankruptcy filings. But, industry experts are careful to note, high-performance in any sector of the economy, particularly in the real estate industry, is open to some variance. South Florida real estate is often characterized as a roller coaster ride, full of ebbs and flows that could reverse the decline in bankruptcy filings seen over the past several years. While it’s a valuable exercise to examine trends in bankruptcy law in aggregate, across a whole market sector, businesses don’t make a decision based on aggregate information, but rather on data particular to their situation, their industry, and their financial outlook. When businesses contemplate a Chapter 11 filing, they need a bankruptcy lawyer able to offer the benefits of vast experience and who can bring to bear a sizable legal history and case law. Our partners are here to provide sound legal advice to South Florida businesses in need. Contact the law office of Savage, Combs & Villoch for a consultation and case review today.