In the bankruptcy court for the northern district of Texas, for example, filings for September were 46 percent greater than in September 2004.
Economists say that as housing markets begin to cool, bankruptcies are likely to increase. "At some point you will get a combination of falling values combined with rising payments on adjustable mortgages, which will result in more bankruptcy," said Mark Zandi of the research firm Economy.com. "For these areas of the country that are enjoying such wonderful conditions right now, it will become much less wonderful a few years down the road."
Source: "Where Home Prices Rise Steeply, Bankruptcies Fall" By FORD FESSENDEN - NY Times - October 9, 2005
One in 73 U.S. households filed for bankruptcy in 2003, the American Bankruptcy Institute reported Monday [6/21/04].
Personal bankruptcies rose to a record 1,625,208 cases in 2003, nearly double the 812,898 filings in 1993.
The $8.9 trillion in outstanding debt held by households is at a record high compared to disposable income.
Source: "Personal bankruptcies set record last year" -- Dallas Morning News - U.S. and World Briefs - 6/22/04
The graphs below clearly illustrate the detrimental effect of the Bush recession on home ownership.
The "Foreclosure" graph refers to the Dallas, Texas region.
In the "Defaults" graph, note the increasing trend in foreclosures at the beginning of the Reagan era (1980-1987) and again at the beginning of the current Bush era (2001-2003). Compare this to the relatively steady period during the Clinton era (1992-1999).
Source: NY Times - 10/9/05
Source: Dallas Morning News 8/29/04 - Tom Setzer/Staff Artist
Source: Dallas Morning News 8/29/04 - Betsy Bock/Staff Artist