2010 and Bankruptcy in Boston
January 14, 2010
by Attorney Kara O’Donnell
O’Donnell Law Offices
A new year brings more changes to the face of bankruptcy in the Boston Bankruptcy Court. 341 Creditor Meetings are now being held at the Post Office Square location in the heart of the Financial District.
As for substantive changes to the bankruptcy law . . . there has been ongoing debate in Washington about a proposed pro-consumer amendment to the Wall Street Reform and Consumer Protection Act.
This Act would change the law and allow bankruptcy judges, in certain cases, the flexibility to not only reduce mortgage interest payments but also the actual principal of the loan. (They already can do this for second vacation-type homes, a loophole benefitting the well-to-do.) Under current law bankruptcy judges may not alter the principal amount due on primary mortgages.
In fact many economists believe that the only real way to slow the number of foreclosures is to allow such a law to be put into place.
But the 2,400 member strong Mortgage Bankers Association is dead set against it and is arguing that the proposed cram-down legislation “will encourage more homeowners to opt for bankruptcy, and it will inject new risk into the mortgage market, thus making it more difficult for borrowers to buy, sell, or refinance a home.” Sound like a bunch of malarkey to you?
Keep an eye on the news for developments. If there’s anything that cash-strapped homeowners could use in 2010, it would be just a little more help from Washington.
Kara O’Donnell, Esq. is a bankruptcy attorney in Quincy, MA. Call 857-526-1355 for help with your bankruptcy filing. http://www.QuincyLegal.com
Kara O’Donnell, Esq.
O’DONNELL LAW OFFICES