Jacksonville Bankruptcy Court is One of the Busiest in the Nation

The Jacksonville bankruptcy court is part of one of the largest bankruptcy divisions in the nation. The U.S. Bankruptcy Court Middle District of Florida, which oversees metropolitan areas such as Jacksonville, Orlando, Fort Myers and Tampa, hear more than 60,000 cases a year. The district covers 25 of the state’s 67 counties and ranks in the top five among districts nationwide in volume.

The Middle District is the second busiest in the country behind the Los Angeles district, according to Chief Judge Paul Glenn. Double-digit unemployment in the wake of economic crises yielded 2010’s record year of 66,618 filings within the district.

The reasons behind the high volume of claims are varying. The biggest is the sheer size of the district. Stretching from Jacksonville to Fort Myers, the district covers some of the largest urban areas in the state. Not only is it a large area, it’s a diverse area consisting of the tourist mega city Orlando, the industrial and financial cities of Jacksonville and Tampa, the retirement area of Fort Myers, and, of course, the agricultural areas between them. Florida’s population has also has been increasing and the Middle District jurisdiction area has made up for 70 percent of the state’s population increase. So, as the population rises, so will the bankruptcy numbers. Overall in 2006, only California Central District (18 million people) had a bigger population than the Middle District’s 10 million – which is even bigger at five years of population increase.

Of course, the filings did decline after the passing of Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, but they have since risen and peaked last year. This is all in the wake of the economic recession that has not only hit Florida and the United States, but also the world.

During the first half of this year, bankruptcy claims have decreased, including Jacksonville bankruptcy claims. However, they are expected to increase during the second half. Chapter 7 liquidations were down 16 percent and remained to be 75 percent of all bankruptcy filings. Chapter 11 reorganizations fell nearly 28 percent, accounting for about 12 percent of total filings.

The courts are certainly busy along with bankruptcy attorneys in Jacksonville. Here are some rankings of the Middle District as compared to other courts nationally:

- In Chapter 11 claims the Middle district is ranked fourth behind Central California, Southern New York and Delaware. 
- In Chapter 7, the Middle District is ranked third behind Central California and Northern Illinois.  
- In Chapter 13, the Middle District is ranked second behind Central California.  
- The Middle district ranks second in total business fillings  
- The Middle District is second busiest in cases per judge, only Detroit is higher due to that area’s hard hit times.