Specifically, the national average on 60 day delinquencies for car loans is .81%, while the 90 day delinquency average for credit cards is 1.10%. Although these are relatively small percentages in this current economic situation, the most staggering number is the delinquency on mortgages at 6.25%, almost six times higher than the other loans.

Not surprisingly, the states that have been hardest hit with foreclosures, bankruptcies, and unemployment also have the most delinquencies. Nevada, which boasts the highest number of personal bankruptcy filings in the country, also has the largest number of mortgage delinquencies at 14.53%. The credit card and auto delinquencies are also higher than the national average, at 1.98% and 1.16% respectively. Florida is not far behind, with its mortgage delinquency rate at 13.34%. Florida, however, has better statistics for its auto and credit card delinquencies, at .99% and 1.47%, respectively.

Why is this trend in the way people make payments occurring? According to the Director of Consulting and Strategy for TransUnion, “Consumers recognize that their credit cards are their primary purchasing vehicles in this economy.” Using this logic, it appears that people, who are unemployed, want to maintain a good relationship with their credit card companies as they find themselves using these same cards for everyday necessities, such as food, paying utilities, clothing, and gas. Additionally, people find that they need their cars to go to jobs or to interviews for a job, and as such, do not want to have their vehicle repossessed. Individuals, in these situations, cannot afford to have these cards or cars taken away, as they provide for their basic needs. Their homes, however, do not hold the same weight.

Aside from individuals needing to use their credit cards and vehicles, they are also reluctant to pay their mortgages on time because of the lack of equity in their homes. People can see the value in their credit cards, paying for food, and their cars, getting to them work, but they cannot see value in a home, in which they owe 20% more than what the home is currently worth. Instead, individuals would rather have a home foreclosed on and continue to keep food on the table. Additionally, more and more individuals care less about a foreclosure remaining on their credit report for seven years. They simply rationalize that they will not own a house for a couple of years and rent instead. Until the housing markets rebounds for a number of consecutive months and unemployment reverses, it is likely that this trend will continue and even increase. It is not hard to understand, however, as people without jobs simply want to take care of their family, food, clothing, etc., and credit cards supply them with that opportunity.

Morris Publishing filed a petition for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Georgia in Augusta. Under the prepackaged plan, Morris Publishing will reduce its overall indebtedness from approximately $415 million to $126.5 million. The prepackaged restructuring plan, agreed to by approximately 93% of its bondholders, will exchange $278.5 million of its existing debt that would be due in 2013 for $100 million in new debt that matures in 2014.

Morris said the $100 million in new notes will bear interest of at least 10%, but some could be as high as 15%. Some of the interest could be paid with additional securities rather than in cash.

"This filing is the final step in the financial restructuring we announced last fall," said Morris Publishing Group Chairman William S. "We are pleased that so many of our noteholders agreed to support this move to get Morris Publishing on more solid financial ground."

Morris and its debtors own and operate 13 daily newspapers and over a dozen nondaily newspapers and other publications nationwide. Morris said operations at their papers, which had a total circulation of 450,000, will continue despite the filing.

According to a filing in bankruptcy court, when the petition was filed Morris’s newspapers had about 1,847 full-time employees and 335 part-time employees. Morris also said that all obligations to employees and vendors will be met in full.

There is no doubt that difficult financial times lead to emotional troubles. Two months ago in Orlando a young father was fatally shot and five others wounded in a downtown office building. The shooter in the incident was struggling with unemployment and was recently ruled incompetent to stand trial. In another incident just weeks earlier, a man charged with fatally shooting his wife in their Isleworth home was also facing foreclosure and the bankruptcy of his company. These extreme cases illustrate the emotional distress that is tied to personal financial turmoil brought by the recession.

People facing bankruptcy may have lost their health insurance and likely think they cannot afford mental-health counseling and other services. The pamphlets encourage using the United Way’s 211 line, which offers 24-hour crises and suicide counseling. Free or reduced cost services which help with issues ranging from mental-health to housing concerns are also referenced.

The effort to display the pamphlets was led by U.S. Bankruptcy Judge Arthur Briskman, who is on the bench in Orlando: "the awareness and availability of professional counseling is beneficial with the significant increase of economic pressures on our fellow citizens.” Briskman plans to make the information available on the court’s web site as well.

According to Briskman, Orlando, which has the highest rate of increases in bankruptcy filings in the state's Middle District, is indicative of the region’s large portion of middle-to-lower income people who are employed hourly and whose incomes have been reduced by the housing bust. In 2009 bankruptcy filings increased 59 percent in Orlando, 42 percent in Tampa, and 32 percent in Jacksonville.

The pamphlets demonstrate a significant first step to helping the people affected, and I hope that bankruptcy filers will utilize the resources available to them.

One such situation arises if you file Chapter 7 but do not enter into a formal written reaffirmation with your mortgage company.  Reaffirmation, as you may know, is the process by which you renew your contractual obligations with your lender.  In the case of mortgage debt, if you do not reaffirm, in theory you will no longer have any personal liability with your mortgage lender.

Section 521(a)(2) of the Bankruptcy Code requires all Chapter 7 debtors to submit a statement of intention in which they assert their agreement to reaffirm or surrender secured property.  In theory, if you do not reaffirm your mortgage, Section 521(a)(6) provides that the automatic stay shall be lifted and that the creditor can foreclose on the property.

In reality, however, some debtors submit a statement of intention providing for surrender, but they continue to make payments and remain in the property.  In other cases, debtor submit a statement of intention providing for reaffirmation but they never execute the documents.  Often, there is no equity in the property and the mortgage lender would rather have the monthly payment than to foreclosure and add yet another home to their inventory of houses.  In yet another scenario, your budget may not support a reaffirmation because it does not show enough cash available to pay the mortgage and your attorney may advise you not to submit reaffirmation paperwork.

If you do not reaffirm your mortgage, you will have no personal liability to pay the debt, but the lender retains a lien interest on the property.  Because there is no personal liability, most lenders will not report timely payments as a positive on your credit reports.  Should you fall behind at some point in the future, or if property values were to rise unexpectedly, the mortgage lender would arguably be within its rights to initiate foreclosure proceedings months or years from the end of your bankruptcy.

The point here is that if you choose not to reaffirm your mortgage obligation, you need to discuss with your lawyer what such a decision means, both in the near term and in the long term.  Do not assume that "things will work out" because that does not always happen.  Proceed with a plan and understanding of your situation.