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Deckard

Wealthy Families In U.s. Resort To Bankruptcy, Dragged Down By Real Estate

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http://www.bloomberg.com/apps/news?pid=206...id=aOYQzpAp2o9w

Sept. 9 (Bloomberg) -- Wealthy individuals’ Chapter 11 bankruptcy filings jumped 73 percent in the second quarter from a year earlier, according to the National Bankruptcy Research Center, a research firm in Burlingame, California.

More individuals or families with at least $1,010,650 in secured debt and $336,900 unsecured are using Chapter 11 of the U.S. bankruptcy code typically associated with business reorganizations. Falling U.S. home prices leaves them unable to refinance or sell their property when they drop below the value of their mortgage, said Chicago bankruptcy attorney Joseph Baldi.

...

“There are a lot of people with real estate, and they can’t afford it,†said Baldi, the Chicago attorney, who is scheduled to speak to the American Bankruptcy Institute on Chapter 11 next month. “They can’t make the payments, and they can’t sell the house.â€

About 4.3 percent of U.S. homes, or one in 25 properties, were in foreclosure in the second quarter, according to an Aug. 20 report from the Mortgage Bankers Association in Washington. That’s the most in three decades of data.

“Real-estate is an incredible thing on the downside,†said Jason Green, a bankruptcy attorney based in Washington. “Equities can only go to zero. Property can go well below zero,†because of ongoing expenses such as property taxes, insurance and maintenance on primary residences, vacation homes and investment properties.

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Guest sillybear2

How we've mangled our language and thinking, people with a net negative worth in excess of -$1m are actually the least 'wealthy' individuals in society, even a tramp on the street with only a dime in his pocket has a most favourable balance sheet by comparison.

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How we've mangled our language and thinking, people with a net negative worth in excess of -$1m are actually the least 'wealthy' individuals in society, even a tramp on the street with only a dime in his pocket has a most favourable balance sheet by comparison.

Let me beat IRRO to it: debt is wealth, doncha know? ;)

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Guest DissipatedYouthIsValuable
The Chapter 11 recovery.

After me, all together now.

Oh.......

It's a.........

jobless

growthless

quantitatively eased

Chapter 11

rent dropping

no lending

back at home with mum and dad...

...recovereh.

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After me, all together now.

Oh.......

It's a.........

jobless

growthless

quantitatively eased

Chapter 11

rent dropping

no lending

back at home with mum and dad...

...recovereh.

You should be on youtube.

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How we've mangled our language and thinking, people with a net negative worth in excess of -$1m are actually the least 'wealthy' individuals in society, even a tramp on the street with only a dime in his pocket has a most favourable balance sheet by comparison.

Yes but the cricual difference the negative-millionaire brigade could legally discharge the debt and live rent-free in foreclosed-but-not-evicted-from home. Not an assured thing in US but widespread, see Mish and KD articles on this.

Tramp on the street has nothing to discharge and nothing to shelter him from elements. :(

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