One of the most common threads between our blog posts is the economic recession and the broad range of effects it’s had on the country. In addition to the financial pressures created by elevated unemployment rates, the residential real estate market also took a plunge during the downturn. Homeowners, who may have been dealing with other debts, suddenly had an underwater property, meaning that they owed more on their mortgage than the home was worth. In this situation, lenders may have moved forward with foreclosure action.
When Massachusetts residents are considering filing for bankruptcy, it often isn't because they are out of a job. It can be relatively easy to build up large amounts of credit card debt, or other types of obligations, that can lead people to seek a way out and get a fresh financial start. However, if people do become unemployed, then financial pressures can become overwhelming in a hurry.