You are saying that they will be bankrupt because their ARMs will readjust and they cant afford the payment correct? If they are bankrupt depends on when they bought the home. If recently as in last summer, yes they have little equity and cant sell. If they bought lets say 3 years ago, they can sell and payoff the loan and debt and prob still have some cash for moving and the 1 month deposit to rent. So it depends on what the persons specific situation is really. Not every ARM holder is screwed if they run into tough times.
