Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

$700 Billion Bailout Bill Might Give Bankruptcy Judges Power To Modify Mortgages

The U.S. Congress is currently pushing through emergency legislation to provide $700 billion in funding to bailout the lending nightmare and to help turn the economy around.  Lawmakers expect to reach an agreement and vote on the bill in the next few days and pass it on to President Bush for signing into law.

In an effort to help the average homeowner that is struggling with foreclosure, Democrats have added language to the bill which would allow bankruptcy judges to modify terms of a mortgage so they can get the debt relief they need in a Chapter 7 bankruptcy or Chapter 13 bankruptcy case.  This is something the bankruptcy laws have never been able to do.  Republicans are currently fighting the addition of this language and President Bush opposes it.  You can read more about this effort in a news item I wrote called "Bankruptcy Proposal To Avoid Foreclosure Part of Government Bailout Legislation."

Now is the time for all consumers to contact their Congressman and urge them to vote in favor of keeping the bankruptcy language in the bill.  If the federal government is going to step in and bail out huge corporations, then some relief should be afforded to the average citizen.

St. Louis, Missouri bankruptcy lawyer and Illinois bankruptcy attorney James Brown is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and provides those books free of charge to anyone in Missouri and Illinois.  People don't realize they have a number of options to consider when facing a foreclosure.  To learn more, you can go to our website or call us for free at 1-866-570-8484.