Home -> Law Blog Directory -> Bankruptcy Blogs -> The BK Blawg

OR PHONE (866) 635-1838 for Bankruptcy Help, (866) 635-6190 for Divorce,
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense

Find a Local Lawyer

Bankruptcy (866) 635-1838
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402



: The BK Blawg

Congress Considers Bill that Would Allow Homeowners to Modify Mortgage Terms in Chapter 13

By Jonathan


Jonathan Alper, writing in the Florida Bankruptcy Law blog, reports that Democratic congressmen have introduced House Bill 7307 which would empower bankruptcy judges to reduce the balances of "upside down" mortgages to the value of the property and to reduce mortgage interest rates in some cases.

So called "cram down" authority currently allows bankruptcy judges to cram down car loans, furniture debt and other secured loans. The BAPCPA changes to the bankruptcy law put limits on cram downs of car loans; it will be interesting to see if Congress expands cram downs to mortgage loans will they also change the rule that apply to automobile debt.

Opponents to this expansion of cram down authority contend that by giving bankruptcy judges the power to change mortgage loan terms, the mortgage security market will be destablilized and that the cost and availability of mortgages - especially to credit challenged homeowners - will tighten because of the uncertainty that such potential modifications will bring to the market.

Attorney Alper offers his own opinion - that mortgage cram down be approved for a set period of time in order to stabilize the housing market, then to revert back to current rules.

I'm not so sure that Congress has the discipline or the political will to write laws that might help restore order to our financial markets battered by a once-in-a-lifetime crisis. I think that the tempation will be too great for Congress to regularly tinker with the operation of the free market, which may provide short term relief, but will result in long term damage to those markets.

Full post as published by The BK Blawg on December 02, 2008 (boomark / email).

Bloggers, promote your law blog by nominating your blog for inclusion in's Law Blog Directory and RSS Reader. Benefits described.
Related Law Blog Posts
Search Blog Directory:

Search Blog Directory:

Related Law Articles

Lawsuits and Settlements

Related Searches

US Law
#1 Online Legal Resource

Your Blog Subscriptions
Subscribe to blogs

10,000+ Law Job Listings
Lawyer . Police . Paralegal . Etc
Earn a law-related degree
Are you the author of this blog? Adding to your Blogroll increases relevance. You qualify to display a USLaw Network badge.
Suggest changes to this blog's description or nominate another for inclusion. Register for updates.

Practice Area
Zip Code:

Contact a Lawyer Now!

0.4157 secs (from cache 05/23/15 06:39:18)