Wednesday, April 2, 2008

Proposed Bankruptcy Legislation

Last month, Senator Durbin (D, IL) introduced the Foreclosure Prevention Act in the Senate (S. 2636). This proposed legislation would help people save their homes from foreclosure by giving Bankruptcy Judges the power to modify the terms of a mortgage loan in a chapter 13 bankruptcy.

Although it is reported that Republicans blocked action on the bill last month, new efforts are underway to try to reach an agreement. The bill is opposed by the financial service industry and the Bush Administration. It is also not embraced by all Democrats.
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