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Living in the Valley of the Shadow of Debt

By Cathy Moran

Nearly 40% of California homeowners spend more than the target 30% of their income on housing; 15% spend more than 50%. Therein lies the start of financial instability.

Liz Warren’s book on the Two Income Trap identified the quest for schools in better school districts as the reason that two income, middle class families were going broke at record rates. The budget simply had no margin for error, or for illness, job loss, or divorce.

So, while the bankruptcy schedules show credit card debt, it’s probable those credit cards were used to provide the goods for day to day living in a housing market gone mad.

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Filed Under: Pondering

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

What Happens To Your Bank Account in Chapter 13

Those considering filing a Chapter 13 bankruptcy worry about "what happens to my bank account?" Will the trustee take all the money? How do I pay my living expenses after I file? The short answer is: nothing changes. The account remains yours and available for all the expenses of day to day living. Because, … Read more

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