It could be that the borrower were sick and can't afford the hospital bills....they are declaring BK to avoid the debt.

One of them asked for some sort of collateral in case I die, get sick etc.

I just came across this post and I have a sick feeling in the pit of my stomach for you guys. 

It’s plain stupid use regular credit cards without paying them off every month - only 0% for a year would help.I have $120K between all my credit cards and all of them 0% with 2-3-4% fees upfront.

If something bad happens ( get sick, lose my job etc) at least I have a place to live and only have to worry about the taxes etcSo you have to factor in risk....with bigger risk, you have the potential for bigger reward...but also the potential for bigger failure....you have to decide on where in that spectrum YOU want to play

@Will Guy Generalizing a bit and trying to put this very plainly, if you are seeking a conforming, residential mortgage for this transaction, it is probably not going to happen with you closing it in LLC.

Why can't they just put things in plain and simple English!

Sorry but that's the cold plain truth.The bankruptcy has nothing to do with this.

Plain and simple.

Are people going to get sick of the "cities" and move to more rural areas?