Obama Agenda for Home Loans
By Kent Anderson, Oregon Bankruptcy Attorney on Jan 6, 2009 in Bankruptcy Cases & Legislation
The Obama transition has clarified its position on the modification of home loans in bankruptcy. Obama and Biden are calling for a change in the bankruptcy code to allow modification of the terms of loans on the debtor’s primary residence.
With the recent introduction of legislation by Senator Dick Durbin to modify the bankruptcy code, this push from the incoming administration will significantly enhance the chance that bankruptcy judges will soon be given the authority to restructure home loans and conform them to economic reality. A similar measure, proposed by Senator Durbin, failed to pass last spring in the senate.
Our own David Liebowitz just called for this legislative change in his article on bankruptcy modification of home loans. With help from our new president and a democratic congress, he will likely get his wish. All of us should help encourage congress to enact this much needed legislation.
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