NACBA Supports President Obama's Plans On Bankruptcy

NACBA Supports President Obama's Plans On Bankruptcy

The National Association of Consumer Bankruptcy Attorneys (NACBA) issued a statement Feb. 19 supporting President Obama's plans to restructure home mortgages, and take other steps, to deal with the growing number of consumer bankruptcies.

The statement reads as follows:

At a time when an estimated 6,600 American families are losing their homes to foreclosure every day, we welcome the Obama Administration’s support for changes to existing bankruptcy laws that will allow for judicial modification of home mortgages. The Obama Administration is the latest major player in this national debate to recognize the fact that judicial modification must be part of the solution to today’s worsening home mortgage  foreclosure crisis.

 

 

It is painfully clear that the continuing, and indeed worsening, foreclosure crisis is perhaps the single largest impediment to this country’s economic recovery. We call on the banking industry to impose a moratorium on foreclosures until the Obama housing plan, including and in particular bankruptcy reform, has been fully implemented.

 

 

Just as important as forbearance by the banking industry is the need for action by Congress NOW. We agree with consumer advocates and others who say that Congress and the Administration should move with the same sense of urgency on curtailing this threat as they did with the economic recovery bill just signed into law.

 

 

Ever since the mortgage foreclosure crisis erupted into the public view in 2007, a broad array of consumer, civil rights, housing, community, labor and other organizations, as well as economists, have advocated judicial mortgage modification relief as an effective approach to stemming the growing tide of foreclosures - a solution that, unlike every other solution being considered in Washington, comes at absolutely no cost to U.S. taxpayers. This is one solution we know will work. The infrastructure already is in place. It is something the bankruptcy courts do every day with other assets. And, estimates are that this solution alone could cut foreclosures by at least 20 percent.

 

 

 

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Comments

James Cordrey
  • 04-21-2009

Allowing bankruptcy judges to modify mortgages would help so many of our clients stay in their homes.  Our clients truly cover the income spectrum by ranging from disabled to extremely high income earners.  We represent the unsophisticated consumer and the savvy business owner.   While one might expect the unsophisticated consumer to have a less than desirable mortgage, it is surprising how many of our savvy clients are in the same boat.  Hopefully, the Obama Administration''s plan to help families save their homes will become reality.