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What percent of people going bankrupt have housing debt - either a mortgage or rent? What percent of people who declare bankruptcy have personal debt owed to p
by hackeraccount 5y ago
What percent of people going bankrupt have housing debt - either a mortgage or rent? What percent of people who declare bankruptcy have personal debt owed to people they know?
I understand that it's a 1 paragraph story but there's some nuance there that's being implied and some that people pass along that's not supported by that paragraph.
- dragontamer 5y agoIt seems unlikely for a mortgage owner to go bankrupt under today's circumstances. Right now, the housing market is up. This means that if anyone gets foreclosed upon, the house is worth more than the mortgage. So they aren't bankrupt at all. Sure, they lose their house and might be homeless, but no reason to declare bankruptcy yet. In 2007, the housing market was down. That's where you'd get bankruptcies: because the house was worth less than the mortgage. So called "underwater mortgages". You get foreclosed upon, but still have to pay $100,000 after losing your house and becoming homeless. So it all depends on the market price of homes.
- syshum 5y agoBankruptcy is a valid legal tool used all time by people ti get out from under crushing debt before it crushes them. In many states your personal residence is protected and exempted from bankruptcy so it would not be wise to use your equity or get to the point of foreclosure in lieu of filing bankruptcy. If you have large amounts of unsecured debt (i.e personal loans, credit cards, etc) then I would absolutely explore bankruptcy before becoming homeless or losing my home