Will Gasoline Prices Cause More Bankruptcy Filings?
By Carmen Dellutri, Attorney at Law on May 21, 2007 in General Bankruptcy Information
This is more of a bankruptcy rant than a bankruptcy blog. In Southwest Florida, our economy is service industry based because we rely on tourism. This morning on the radio, the big story was gasoline prices across the nation. As a bankruptcy attorney, I am careful to watch for national trends. Therefore, the part of the story which hit me right between the eyes was that there was no relief in sight for the sticker shock at the pump. Immediately, the questions in my mind were: How will this affect my clients and those individuals who are on the brink of bankruptcy? Will Chapter 13 Debtors, who are already on a strict budget, be able to survive? Is the price of a gallon of gasoline, the proverbial straw that will break this Florida camel’s back?
Although we do not have a state income tax, Florida has high gas prices. The price of gasoline combined with higher property taxes and home-owner’s insurance is crippling the residents of Florida. With no end in sight to this dilemma, how will the average Floridian survive. What if the tourists cannot afford to come to Florida because of the gas prices? Something will have to give. I will talk more about why people are filing for bankruptcy now.
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