Wealthy 'opting for Chapter 11'
Wealthy individuals’ Chapter 11 bankruptcy filings jumped 73% in the second quarter from a year earlier, according to the research firm National Bankruptcy Research Center.
More individuals or families with at least $1,010,650 in secured debt and $336,900 unsecured are using Chapter 11 of the US bankruptcy code typically associated with business reorganisations. Falling US home prices leaves them unable to refinance or sell their property when they drop below the value of their mortgage, said Chicago bankruptcy attorney Joseph Baldi.
bloomberg.com
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