Bankruptcy

As the Economy Turns...

By Bill McLeod, Esq.

Today, my Bankruptcy Colleague and fellow-blogger Jonathan Ginsberg wrote about The Psychology of Debt Collection: Avoid the Manipulation.

The Boston Globe reports that the Massachusetts Attorney General has filed a bill to slow down foreclosures. But the legislation would only protect those in "risky" loans. And if people keep losing their jobs, homeowners with "risky" loans will not be the only ones facing the possibility of losing their home.

Meanwhile, in Washington, a bill that would let some homeowners in Chapter 13 modify the mortgage on their principal residence has cleared the House Judiciary Committee.

While homeowners might be getting a break, recent graduates are finding it tougher and tougher to pay off student loans. An opinion piece in the Minneapolis Star Tribune suggests that a good way to stimulate the economy may be to forgive student loan debt.

The Federal Reserve however, seems to have another idea, although I am not convinced it's a better idea. From CNNMoney.com:

The Federal Reserve is getting ready to launch a new program that should make it easier for consumers to get credit-card and auto loans -- though not necessarily at lower interest rates.

Yikes.

Full post as published by McLeod Law Offices on January 28, 2009 (boomark / email).