Another Bankruptcy Law Reform Proposal
By Kurt O'Keefe, Attorney at Law on Dec 1, 2007 in Chapter 13 Bankruptcy, Consumer Protection, Foreclosure Issues, Michigan, Mortgages
Senator Dodd, presidential candidate, has several proposals for reforming bankruptcy law.
Making student loans dischargeable in Chapter 7 bankruptcy would be a big change over current law.
Allowing Judges in Chapter 13 cases to change interest rates and lower the balance due on a mortgage has been introduced in the House, and is part of a bill Dodd says he will introduce in the Senate.
His proposed bankruptcy reform legislation would also provide that medical debt always be dischargeable.
It is not clear how this changes current law, but, hey, the guy is running for President.
Currently, he chairs the Senate Banking Committee, so he has a seat at the table for any mortgage reform laws that come down the pike.
At least to some extent, this is political posturing, but Dodd is one of the few to have voted against the current bankruptcy law, something his campaign is emphasizing as a difference between himself and Mr. Edwards.
I bet he will continue to push for reform, even after he drops out of the White House race.
Let the candidates know your views on the issues, and question their past votes and the basis for them, and if that has changed.
Nobody thinks they will file bankruptcy, so there is not much constituency for reform of the laws. The people filing now never thought the current law would affect them when it was passed in 2005.
You may not think any change in that law will effect you, but, unfortunately, lots of people will be filing in the next couple of years.
If you liked that post, then try these...
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Better Business Bureau and Foreclosure Rescue Firms by Däna Wilkinson, Attorney at Law
Mortgage Loan Modification May Soon Be Allowed in Chapter 13 Bankruptcy by Jill Michaux, Kansas Bankruptcy Attorney
Bankruptcy In Florida: Chapter 13 Two Years After Reform by Carmen Dellutri, Attorney at Law
Can I Pay Back My Parents Before I File Bankruptcy? by Susanne Robicsek, North Carolina Bankruptcy Attorney
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