Here's an article I found:http://www.nolo.com/legal-encyclopedia/bankrupt-tenants-how-new-bankruptcy-29689.html"It's not uncommon for tenants with significant financial burdens to declare bankruptcy.

In a more complex since of what the law was written for; using notes, refinancing, other deceptive representation or other financing options to strip the equity away, so the home owner ends up going bankrupt and the financial institute takes the property, but that's another topic in itself..

I like to research things a lot before committing and I think I have a good chance of not going bankrupt from real estate :)

Highly leveraged builders and developers that made it during the boom will go bankrupt when sales don't match pro-formas any more. 

We had to get rid of an IRS tax lien that was placed on the bankrupt tenant in order to clear the property for me to buy - I really appreciate good attorneys!

Even if something ends up going wrong with this property or with a tenant it's not going to bankrupt me and the education I've received will allow me to go out and find more deals.

After a while, he went bankrupt. 

It's a distraction, and while I seriously doubt it would bankrupt you one never can feel totally free until that debt is gone. 

My second deal was buying the remaining lots (8) in my 11 lot subdivision that went bankrupt.

There are a lot ( 5 ) properties in an area very sought after that have been boarded up by the city. The company that owns them has long since gone out of business in 2009 but the buildings still sit there in the name...