Will Bankruptcy Laws Be Changed To Help Homeowners In Foreclosure?
Consumer and civil rights advocates are fighting for legislation to pass in Congress designed to help foreclosure victims save their homes and avoid eviction with the help of the bankruptcy courts. This bill making changes to existing bankruptcy laws and the power of judges is supported by many consumer advocacy groups, such as the Center for American Progress, the American Association of Retired Persons (AARP), the National Association for the Advancement of Colored People (NAACP), and the Service Employees International Union, just to name a few. The new legislation would allow bankruptcy courts to reduce the debt owed on a homeowner’s primary mortgage. This could help balance the 8% decline in the property values in the housing market in the last year. After being turned down by the Senate, controlled and funded by the banking industry and mortgage company interests, these hopeful groups have petitioned the House and are very optimistic of a successful outcome for the proposed legis
