In Jacksonville Florida it is reported that bankruptcy filings are down by over 10% compared to the first quarter of 2010. Is there any chance that we’ve seen the tide of bankruptcy filings turn and now will continue to decline. I think the answer is probably “NO.” Here’s why.

In Florida, which is a judicial foreclosure state, we saw a halt to the foreclosure lawsuits due to the claims of “robo-signers” and other nefarious activities by lenders. Many of the big lenders completely halted the foreclosure process for over 4 months. That really didn’t happen in Tennessee where the lenders utilize what is known as non-judicial foreclosure.

Non-judicial foreclosure is simply a foreclosure that does not require the filing of a lawsuit. If your home is in Knoxville, and you have not filed a bankruptcy case, then a lender can foreclosure your home, start to finish in less than 30 days. Now that’s pretty fast. Compare that will Florida and other judicial foreclosure states (where a lawsuit is required in order to foreclose) and you can easily see the disadvantage most homeowners are under in Tennessee.

I’m often asked the question, “Can I save my home from foreclosure?” Most often the answer is “YES“. If you file a Chapter 13 bankruptcy and cure the back payments under your Chapter 13 Plan, then you will most likely be able to keep your home. However, you must file your bankruptcy case in Knoxville before the foreclosure occurs.

Lenders with loans covering homes in Knoxville, Maryville, Sevierville, Jefferson City and surrounding areas continue to foreclose at what I consider break-neck pace.

So, while bankruptcies may be on the decline in Florida, I don’t expect that the trend will be replicated in Tennessee. Additionally, I agree with bankruptcy lawyer Nina LaFleur, a director of the Jacksonville Bankruptcy Bar Association, who has said that he considers this decline to be simply a “pause.”

Don’t wait too late to save your home. If you are facing foreclosure, call my office and set up a free consultation so that we can explore your options. For most folks, the answer to the question, “Can I save my home from foreclosure? “YES”.