Wave of Bankruptcies Hits States Hammered by Housing Bust

By Sara Murray | Wall Street Journal | January 7, 2010

Personal bankruptcies soared last year in Western states hit hardest by the real-estate bust.

In states such as California, Arizona and Nevada, where housing prices soared and then collapsed during the past decade, consumer bankruptcy filings rose roughly twice as much as the national average increase of 32%. Homeowners fell behind on mortgages and could no longer tap into their home equity to pay down other debts.