Chapter 13 bankrupcy reform will go to the House as a stand alone proposal, being separated from the stimulus bill that our government wants to give us next week.
This reform would allow bankruptcy courts to change the terms of mortgages on homes, so that the homeowner could get a fixed rate, stretch the total term to 40 years, and lower the balance to the value of the house.
Of course, being that this would cost the taxpayers nothing, no opportunity for our trusted servants to pass out taxpayer money to their own benefit, it is now taking a back seat to the stimulus bill, which will be the largest single disbursement of our money, ever.
As the foreclosure crisis continues and gets worse, not better, this relief is needed now more than when we started blogging for it many months ago.
National Association of Consumer Bankruptcy Attorneys report on the status of the bill follows:
“the House of Representatives will vote next week on the economic recovery plan that President Obama is working with Congress on getting enacted. We learned late today that the chapter 13 mortgage modification bill will not be included in that package. The good news is that President Obama and House and Senate Democratic leaders are firmly committed to getting this legislation passed into law as soon as possible and will be looking for appropriate vehicles to attach it to.
In the meantime, the House Judiciary Committee will mark up H.R. 200, the chapter 13 mortgage modification bill on Tuesday.”
Your house may not be in foreclosure, but its value is being lowered by all the homes in your neighborhood already there.
This reform costs us nothing, compared to the hundreds of billions already thrown to the banks largely responsible for creating the crisis.
Let your representatives, especially in the Senate, know how you feel.