Earlier this month, Democratic Senator Sheldon Whitehouse introduced a bill that would allow mortgages to be modified during bankruptcy proceedings at a local level. Currently, programs such as this exist in several states, including New York and Florida, but the proposed bill would expand the mediation programs to all U.S. jurisdictions.
Following the introduction of the Limiting Investor and Homeowner Loss in Foreclosure Act, US Bankruptcy Court Judge Arthur N. Votolato upheld the Court’s right to pre-trial foreclosure meditations in the state of Rhode Island. Whitehouse stated that he hoped the decision “will encourage other districts…to adopt similar programs.”
However, three House Republicans have already introduced legislation that, if adopted, would immediately eliminate the program.
The Sader Law Firm has more than 30 years of combined experience in Chapter 7 bankruptcy, Chapter 11 bankruptcy and Chapter 13 bankruptcy cases. Contact an attorney at The Sader Law Firm today for a free consultation at (816) 561 1818 to find out whether you qualify for bankruptcy and to learn more about the options available to you.