Attorney Mark Schnitzer Talks Bankruptcies with Real Estate Trade Journal
July 27, 2010
So when the IE Real Estate Insider spoke with Mark, they got an insider's account into a field of law that has seen a surge of activity over the past couple years.
In his Q & A with IE Real Estate Insider, Mark cites a combination of experienced professionals as well as investment amateurs who comprise the growing pool of debtors filing bankruptcy cases. A good number of filers, Mark said, come with a sour record of investing in the real estate market. Typically, lines of credit were run on second homes, with debt loads increasing.
Other filers are those with a fundamental misunderstanding - or lack of understanding - of the best way to maintain a line of credit.
"There are people who don't understand debt. They honestly believe that all they have to do is a make a minimum payment on a credit card and they'll be OK, which of course isn't true."
To avoid bankruptcy, Mark recommends being disciplined with one's access to credit and acknowledging that there are consequences to not paying one's debts.
Mark also added that filing bankruptcies today is not the same as it was in the past.
"For a while credit was so easy to get that two years after someone filed bankruptcy they would be back to where they were before. It was like it had never happened, but it's not like that now. "
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