Sometimes academics who study a subject lose the forests for trees. In the process, they perpetuate stereotypes that have no basis in fact. And sometimes a cigar is just a cigar.
Debtors living in homes with upside down mortgages can strip their second mortgages off their homestead in a Chapter 13 bankruptcy when their home is worth less than the first mortgage balance. What if the debtor does not have a second mortgage but owes his HOA dues and assessments incurred prior to bankruptcy, and the HOA has recorded a lien to secure repayment.
The United States will go over the fiscal cliff tomorrow if Congress cannot come up with at least a short term solution. But what about us? Many of us have already gone over our fiscal cliff. Even if Congress finds a way to avoid the country going over the cliff, it is unlikely they will help the rest of us solve our financial distress.
