Bankruptcy

NY Times Editorial: No Protection for Homeowners in Bankruptcy “Reform” Act

This editorial in the NY Times is required reading - but probably not for the reasons you might think. While I applaud the Times’ willingness to call Congress on the carpet for the most blatantly anti-consumer law on the books today, I’m leery of the overall “no protection” theme. While it’s true the law is badly written, and doesn’t make it easy for homeowners to dig out of financial distress, it does still offer some protection. By allowing consumers to dig out of the unsecured portion of the financial hole, it frees up much needed income to let homeowners pay down their mortgages.

Still - I echo the Times’ call for Congressional revisitation of the law. It definitely, desperately needs fixing.

Technorati Tags: BAPCPA, new york times, foreclosure crisis

© 2007 SC Bankruptcy & Consumer Law Blog.