Decline in Bankruptcy Filings due to High Home Prices

Share |
(Sacramento, CA)
Friday, March 25, 2005

Figures just out show a 9% drop in the number of people filing bankruptcy last year. It’s part a national trend.

There’s a related fact. Mortgage delinquencies are dropped to their lowest level in 25 years. With home prices continually on the rise, more people have room to refinance … or to simply sell their house and get out from under financially.

A big drop in filings is expected last this year … after Washington pushes through the Bankruptcy Reform Act, which will make it harder for individuals to successfully use bankruptcy to escape a financial dilemma.