S. Florida consumers, businesses feeling economic pinch

The figure of concerns and consumers filing for bankruptcy is increasing rapidly in the state and the nation. In the U.S. Bankruptcy Court's Southern District of Florida, there were 73 percentage more concern and personal bankruptcies in April compared with a twelvemonth ago, according to new statistics compiled from tribunal records by Jupiter eSources in Sooner State City. The Southern District covers nine counties: Palm Beach, Broward, -Dade, Highlands, North American Indian River, Martin, Monroe, Lake Okeechobee and St. Lucie. Business bankruptcy filings countrywide increased 49 percentage in April from a twelvemonth earlier, the greatest addition so far in 2008. Some of the biggest companies filing for bankruptcy have got had big business offices or supplies in South Sunshine State including: New Century Mortgage Corp., and Linens 'N Things. Two South Sunshine State builders, Levitt and Sons and Tousa Inc., also sought bankruptcy protection from creditors. Each filed for Chapter 11, which gives them an chance to reorganise and emerge from bankruptcy.

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The rise in bankruptcies began a couple of old age ago with the lodging downswing and now related businesses, including contractors, door and window companies and flooring businesses, are declaring bankruptcy. "This is really serious. It's not going to be a short cycle. It's not a speedy recovery," said Alice Paul Singerman, bankruptcy lawyer for Levitt and Sons of . He's also co-counsel for Hollywood-based Tousa. For every client that data files bankruptcy, Singerman said he have 10 more than troubled clients that make "workouts," to avoid bankruptcy. They sell the business, refinance debt, or take on new spouses with money. In South Florida, many family-owned mercantiles are being affected. "We're seeing coevals of wealthiness evaporate," Singerman said. Jeffrey Bast, a Miami bankruptcy lawyer who stands for a creditor in the Tousa case, said he sees many companies suffering because their renters are leaving or not able to pay the rent. "They're starting to do picks about what debt to pay and we're seeing quite a spot of filings as a result." Lion Stutz and his eating house spouses avoided bankruptcy by merchandising their Miramar restaurant. "We started seeing more than than and more people bringing their nutrient from home," Stutz said. "It's not only existent estate, people are struggling to eat. They're watching every dollar." In April, the three spouses sold their restaurant,