Congress Bows to the Banks Again, and Again

In a move that has been widely criticized already this morning, the United States Senate voted 45-51 to kill the “Helping Families Save Their Home Act of 2009.” The Act would have given the United States Bankruptcy Courts jurisdiction to modify a debtor in Chapter 13 bankruptcy’s primary residence mortgage to bring it within affordability standards. The Act was hailed by many in the industry, including bankruptcy judges as “correcting” a long-standing anomaly in the bankruptcy code which allows debtors to modify all kinds of secured debt, including car loans, loans on vacation homes and yachts, but not a loan secured by the debtor’s primary residence [more . . .]

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Bankruptcy Car “Cram-Down” Rules — “910” Is The Key!

If, like many debtors I meet with, your car is underwater, then you will want to consider your options regarding retention or surrender of the vehicle. In a chapter 7 bankruptcy, this is a pretty easy decision — you can keep the car and continue making payments, or you can surrender the car and discharge any obligation for a deficiency. In chapter 13, however, there is a third option that might make sense [more . . .]

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Did 2005’s BAPCPA Really Make It Harder to File Bankruptcy?

The Associated Press yesterday released its findings on the recent surge in bankruptcy filings throughout the country. Despite a series of changes to the Bankruptcy Code in October of 2005 which were intended to make it harder for individuals to file bankruptcy and discharge their debts, the report finds that on the contrary, filings — particularly Chapter 7 filings — are on a dramatic rise across the country [more] . . .

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