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Chapter 13 Mortgage Cram-down Still a Possibility

Chapter 13 Mortgage Cram-down Still a PossibilityWritten by Craig D. Robins, Esq.
 
Several months ago I reported on the legislative efforts in Congress to pass a bill permitting consumer debtors in Chapter 13 cases to be able to cram-down mortgages.  See Will the Senate Approve Cram-Down Legislation to Enable Mortgage Modification in Chapter 13 Bankruptcy Cases? [1]
 
Unfortunately this bankruptcy legislation never made it as I wrote in Bankruptcy Cram-Down Measure Appears to be Doomed [2].
 
However, last week a Senate Judiciary subcommittee held a hearing to discuss whether the federal voluntary home loan modification programs were working.  The committee determined that the programs were not working and that they were providing very little success in stemming foreclosures.
 
As a result, some senators announced their intention to revive the cram-down legislation which will permit Long Island Chapter 13 debtors to be able to cram-down and modify their mortgages in Chapter 13 bankruptcy cases. 
 
Although any cram-down legislation will have a uphill battle, it is nice to know that some legislators continue to battle the banking and finance industries in an effort to help consumers.
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