Senator Mel Martinez (R-FL) figures to be a critical vote on the Bankruptcy Reform Act of 2009 (S. 61) when the Senate resumes its session after a month-long recess.
The pending bankruptcy bill, if passed by the Senate, would save most of the Middle Class from imminent foreclosure and displacement from their homes.  Republicans (and the [...]

In his recent article, Congressman Ron Paul of Texas concludes that forcing inefficient corporations into bankruptcy is a more reasonable solution than bailing them out.
“Bankruptcy was the stimulus that we needed in the case of AIG. More bankruptcies would clean out mal-invested resources and enable economic growth again.”
Ron Paul gets it right, but why is [...]

The National Association of Consumer Bankruptcy Attorneys has created an easy-to-use toll free number that any person in the United States can use to contact their congressional representative in support of the pending bankruptcy reform legislation.
The vote on bankruptcy reform is TUESDAY, MARCH 3rd, and the banking industry is fiercely opposing it!  Remind Congress that [...]

The biggest opposition to the Bankruptcy Act of 2009 comes from those who will not get a direct and immediate benefit.
“It’s not fair!  I pay my bills on time!  Why should I help bailout someone who got in over his head?  Where is MY handout?”
If you are one of these people, quit your whining because [...]

Many of my foreclosure defense clients would be fine financially if it were not for their foreclosure.  They are current on car payments and credit card bills.  But for their awful mortgage situation, they would never consider filing a bankruptcy.  The good news is that, if Congress passes the Helping Families Save Their Homes in [...]

As David Leibowitz reports on Mortgage Law Network, under the “King Amendment” to the mortgage modification bill in Congress (H.R. 200 and S.61), people who got their mortgage by “fraud” won’t be able to get mortgage modifications in Chapter 13.
There is no question that borrowers and lenders ignored the risk of loose underwriting requirements since [...]

How does the (proposed) bankruptcy law, known as Helping Families Save Their Homes in Bankruptcy Act of 2009, actually work?
Here is an example:
Joe is a successful Jacksonville plumber who is a sub-contractor for ACME Homebuilders.  In June of 2005, he and his wife purchased a house for $440,000 with 80/20 financing.  They have a first [...]

One of the stranger provisions in the proposed Helping Families Save Their Homes in Bankruptcy Act of 2009 is the requirement that the debtor certify that he attempted to contact the “holder” of the claim to discuss mortgage modification within 15 days prior to the commencement of the bankruptcy case.
First of all, who is the [...]

All of us here at Bankruptcy Law Network file consumer bankruptcies, and we are all very excited by the prospect of the new bankruptcy law that will allow the modification of mortgages in Chapter 13.  However, our excitement is fueled by the fact that it is the first real piece of legislation to help the [...]

In Part 1, I discussed the necessity of cramdown to marshal rational behavior in the marketplace.
Student loans are a rare exception to the bankruptcy discharge, meaning that only in the extreme of circumstances will a debtor be able to escape that financial obligation.  At first blush, this might seem fair, but the result of this [...]