Chapter 13 Bankruptcy: A Nonbailout Solution To the Mortgage Crisis?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Aug 31, 2007 in Benefits of Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Protection, Discharge, What Can and Cannot Be Forgiven, Florida, Foreclosure Issues, General Bankruptcy Information, North Carolina, Protecting Assets In Bankruptcy
North Florida Bankruptcy Law Network member Chip Parker was featured in an editorial in the newspaper regarding a potential solution to this mortgage crisis which would not involve a bailout by the government but would spread out the solution among investors and others. He discussed a proposal to amend bankruptcy laws to allow restructuring of home mortgages in bankruptcy. The change could be a win-win solution since it could prevent thousands of homes from being foreclosed upon, ultimately costing homeowners, the government and lenders millions of dollars.
The article, “A Nonbailout Solution Offered” was published in the editorial section of his local paper, The Florida Times-Union, Jacksonville, Fl. on August 29, 2007.
If Chapter 13 cases could allow people to restructure their mortgages in a manner which would fairly compensate mortgage companies for the homes while lowering or locking interest rates to an amount that the homeowners could pay, everyone would benefit. Mortgage companies would have active loans instead of foreclosed properties, the government wouldn’t have to provide bailout money, and most importantly American families wouldn’t be put out of their homes.
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