New Bankruptcy Law May Not Solve the Foreclosure Crisis?

Bloomberg reporter Jody Shenn's recent article suggests that mortgage modifications in Chapter 13 bankruptcy - the subject of the proposed bankruptcy amendment - may not stem the tide of foreclosures in this country. Well, Duh. The new bankruptcy amendment allowing mortgage "cramdown" requires that the debtor be in imminent threat of foreclosure. In other words, if a homeowner is scraping by, but nonetheless is staying current with the mortgage, he is not eligible for relief. Therefore, he

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