ORLANDO, Fla. – Oviedo attorney Randall Hanson says he’s been seeing more people who just can’t get out of debt and are filing for bankruptcy.
“I would have to say, in the last few months, we’ve seen an uptick. You know, and I believe it’s a lot of it’s to do with insurance, car insurance, house insurance, mortgages,” he told News 6. “Then, the amount of income someone’s receiving on a weekly or monthly basis may not be keeping up with inflation.”
LendingTree is an online company that helps people compare and find the best rates for things like loans and credit cards.
They recently rated 50 metros where people are averaging the highest debt, not including mortgages.
Orlando came in at number seven, with people being in debt an average of about $43,888. Austin, Texas, came in with the highest at $45,920.
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Hansen recommends people try to negotiate a lower amount to pay off the debt, but if the debt is still too much to pay off, he advises checking into bankruptcy.
“Generally, Chapter 7 bankruptcy is an opportunity to get rid of your debt in a short time period, maybe five months. It could be a little bit longer. But from the time you file your case to the time it’s finally closed up is generally five months,” he said, adding it costs about $2000 depending on your situation.
The bankruptcy can remain on your credit report for possibly seven or eight years, but Hansen says you will still be able to apply for a mortgage after about two years or get new credit cards almost immediately after filing bankruptcy.
There are some that equate a bankruptcy as emotionally distressing, but Hanson says that with the rising cost of living — but wages not increasing — it is simply not possible for some people to pay off their debts and the financial system in this country is set up for that.
See below for LendingTree’s top ten ranking of the U.S. metros with the most nonmortgage debt:
- Austin, TX — $45,920
- San Antonio, TX — $44,812
- Houston, TX — $44,640
- Miami, FL — $44,230
- Atlanta, GA — $44,059
- Dallas, TX — $43,901
- Orlando, FL — $43,888
- Washington, DC — $42,039
- Riverside, CA — $41,752
- Tampa, FL — $41,439
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