4 friendsI have, all 4 going bankrupt!

Our contractor friend went bankrupt up here with two Subway franchises.

I believe the bankrupt will absolve your debt with both lenders (lien holders).With that said you can't do a short sale unless the lender in the first position is on board.

Worst case scenario (and I've read enough stories to know it happens) you just bought a house and Murphy strikes with his best shot to bankrupt you....what's a reasonable emergency fund to cover most of what he'll throw at me without rendering me illiquid?

Or would you go bankrupt?

So if you have insurance with a non-admitted carrier and that carrier goes bankrupt, then you don't have anyone around to pay your claim.

We could also use that money next year for another down payment on another property if all goes well.My fear definitely arose from watching my parents divorce right before the recession, go bankrupt, and one year later my father was driving a school bus and my mom was living in a friend's spare room.

Or simply fold uo and go bankrupt, companies never do that. 

J, I am so glad to see this thread because after reading Brandon's article about investors who go bankrupt, I was thinking about coming here to ask about mistakes.  

Here in Houston I have a friend that owns an apartment complex and he almost went bankrupt because the apartment complex got completely totaled in the storm and he did eventually get his money but not for two years and during those two years he had to carry the note of the apartment complex without any fines because the apartment was empty.I think it's just a matter of being prepared and having some form of system in place that should something happen you have an action plan