Guest Author: David Siegel

Chapter 13 bankruptcy reform is what is truly needed to stem the time of the current foreclosure crisis.  Even if the code were modified for a short period of time, it would give homeowners the opportunity to restructure loans that are subject to or already in foreclosure.  As the law currently stands, a homeowner in Chapter 13 cannot alter the contractual terms of their loan.  A homeowner can repay mortgage arrears over three to five years, however, the post-petition mortgage payment must be made pursuant to the original terms of the contract.  Under several proposals to modify Chapter 13 bankruptcy, a homeowner would be permitted to restructure the loan...

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