A large numbers of foreclosures are displacing families and damaging neighborhoods nationwide. Analysts predict a million people could lose homes this year and policy makers are grappling for responses. As a result of the real estate fcrisis, a rush of people desperate to keep their homes caused a 57 increase in Chapter 13 filings in Massachusetts for the fiscal year that ended in September.
However, there is one debt the courts can't touch, that is the mortgage loan on the home where you live. Bankruptcy courts are better equipped to save your car than to save your home. Now, with tens of thousands of Americans facing foreclosure unless their mortgage payments are reduced, support is growing to let bankruptcy courts modify mortgage loans. Continue reading →