Bankruptcy

Bankruptcy Legislation May Be Back on Table

By meaghano

We’ve written many times about Illinois Senator Dick Durbin’s efforts to keep more people in their homes with his bankruptcy reform legislation.

The “Helping Families Save Their Homes in Bankruptcy Act of 2009” would allow bankruptcy judges to restructure home mortgages to prevent foreclosure and keep more people in their homes.

When it came up for a vote this summer, the bill was defeated after some heavy lobbying efforts by banks and lenders. But the reform may not be completely dead.

This week, the Senate Committee on the Judiciary will hold a hearing called “Worsening Foreclosure Crisis: Is It Time to Reconsider Bankruptcy Reform?”

This hearing could rekindle talks of giving bankruptcy judges more power to adjust mortgages to make them affordable. We’ll follow the hearing closely and keep you posted on any developments.

Full post as published by The Bankruptcy Blog on July 20, 2009 (boomark / email).