most people dont and probably wont use bankruptcy, becuase at 3% interest a mortgage of $500k, equates to $300 per week for interest which is less than rent.
I know some one in this position and interest on their mortgage is just $200 per week, for them it is a no brainer interest only and seek any kind of assistance from gov, temp jobs etc, rent a room out etc but dont go bankrupt.
Under that circumstance it would be better to hold the property, if possible, and wait for better times even if your only income as a family is the dole - you cant rent a decent house for $300 per week.
(ABS in 2018 stated avg mortgage was $384,700)
some will be forced to sell no doubt as they have more debt than equity and they are behind on payments but by and large most will do the sums and figure out their best bet is probably not bankruptcy.
so i disaggree with your position.
WBC Price at posting:
$15.92 Sentiment: Hold Disclosure: Held
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