The US, through the provisions of the bankruptcy homestead exemption. Though having just looked into it again, they only allow you to retain up to a certain amo

The US, through the provisions of the bankruptcy homestead exemption. Though having just looked into it again, they only allow you to retain up to a certain amount of equity in your primary residence-- anything more than that (or other properties you own) is considered an asset that can be leveraged to pay back your debts, as you suggest. So someone with a cheap house or little equity could still Bain Capital themselves with Bitcoin, declare bankruptcy and start over while avoiding homelessness. But if you're 90% of the way through a half-million-dollar mortgage then yeah you'll have a lien placed on the property. http://www.alllaw.com/articles/nolo/bankruptcy/homestead-exemption.html http://www.alllaw.com/articles/nolo/bankruptcy/homestead-exe...