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I am a practicing attorney. I concentrate on real estate, but file some bankruptcies as well.<br> <br> I have received numerous calls from people who are facing or are in foreclosure. Most had "$0 down" loans and payments that did not meet traditional income to debt ratios. In talking to them, they simply did not realize that a house payment is just the beginning of the cost of home ownership. Insurance and taxes always go up. Then a water heater or roof needs to be replaced, and they cannot pay for it. Last year's high gasoline prices were a big factor as well.<br> <br> I would also note that very few people who file bankruptcy are forced into a Ch 13. A person is only denied a Ch 7 if his or her income is greater than the average income for the state or for the Bankruptcy Court district in which they live, given the the size of their household. Even then, exceptions are regularly granted. <br> <br> It is my observation that the greatest factors in the current financial difficulty (other than buying too much house for their income) are the high gas prices this summer and the Democrats constant drum beet that this is the worst economy since the Great Depression. People get scared and change their spending habits, resulting in a self-fulfilling statement.
By John Barrett

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